Importance Of Procurement Maturity Assessments In The Post-Pandemic Era

TL;DR: Procurement functions in most organisations around the globe are faced with the challenge of rapidly adapting to the post-pandemic era at record speeds to maintain performance and ensure healthy returns. In setting a foundation for this initiative, procurement maturity assessments are an invaluable tool that is available to procurement leaders. Leveraging the insights that are derived from these assessments can enable organisations to set realistic goals based on the current status of their procurement functions and map out a reliable pathway toward successfully achieving these goals while optimising efficiency and results along the way.

For nearly half a decade now, the post-pandemic business climate has brought about disruptions to global supply chains while also exposing the vulnerabilities and fragility of procurement processes in most organisations.?

The crises that followed—both economic and geopolitical—have also highlighted the need for procurement to play a more strategic role in driving business value and resilience. To achieve this, procurement leaders need to assess their current capabilities and identify gaps and opportunities for improvement.

Procurement maturity assessments are among the most potent tools that can help procurement leaders in this endeavour. This is a systematic evaluation of the procurement function’s performance, practices, and potential across various dimensions, such as strategy, organisation, processes, technology, people, and governance.?

Conducting comprehensive assessments can help organisations to benchmark the current state of their procurement functions against best practices and industry standards as well as define a roadmap for achieving the desired future state.

Role of procurement risk assessments during tumultuous times

Procurement maturity assessments are more important than ever before when it comes to perfecting the success and efficiency of procurement strategies in the post-pandemic era.?

The post-pandemic procurement landscape has undergone many changes and experienced a few significant trends, among which the accelerated tilt toward digital transformation of procurement and increased expectations and demands from customers, suppliers, regulators, and society at large have stood out as the primary drivers of change.

In adapting to the new normal, procurement leaders need to ensure that their function is agile, adaptable, and responsive to the changing needs and challenges of the business environment.

Hence, a strategic procurement maturity assessment can assist procurement leaders in the achievement of this goal by providing a framework for measuring progress, identifying gaps, and implementing solutions.

Reasons procurement assessments need to be considered

Procurement risk assessments in adapting and re-aligning procurement functions can be an ideal tool for organisations to lay a reliable road map towards procurement optimisation due to the following capabilities provided:

• Provision of a clear and objective picture of the strengths and weaknesses of the overall procurement function to help prioritise the areas that need attention and investment

• Direction for procurement leaders in aligning goals and initiatives with business strategy and objectives, and communicating their value proposition to stakeholders

• Identification and mitigation of risks and challenges that may hamper the performance of procurement function and ensure resilience, especially in times of uncertainty and volatility

• Initiation of a culture of continuous improvement and innovation within the procurement functions to encourage collaboration and learning across teams and functions

• Retention and development of talent within the procurement function by providing feedback, recognition, and opportunities for growth and development

Aspects of procurement functions that are evaluated through this assessment

Unleashing procurement transformation to thrive in this post-pandemic business climate while optimising results through strategic procurement means organisations must achieve procurement maturity by setting long-term goals and action plans to boost the procurement function.

Achieving procurement maturity starts with a procurement maturity assessment where procurement professionals evaluate the current state of organisational procurement functions by using tools and methodologies to determine the following:

• The organisation’s existing practices for the procure-to-pay process
• The way the organisation’s procurement function impacts cost savings, value, and strategic insights for the growth of the organisation
• The goals set by the organisation to transform the procurement function into a strategic role by improving specified capabilities
• The resources required by the procurement function to achieve these goals

Once an organisation identifies its key objectives in achieving procurement maturity using the assessment, the path toward more efficient procurement practices and strategies becomes more clear.

Recommendations for leveraging procurement maturity assessments to align your procurement function

The rate of success that can be achieved through procurement maturity assessments largely depends on the level of professionalism of specialists conducting the assessment and the accuracy and suitability of the procurement maturity model in relation to its applicability to the business.

Therefore, it is always recommended to work with a professional provider in procurement assessments with expertise and specialist knowledge in your industry while also possessing a solid track record for service excellence.