1. separate operational and strategic purchasing tasks.
A separation of operational and strategic purchasing tasks is a basic requirement for strategic purchasing optimization or alignment above a certain company size. This separation contributes to increasing the efficiency and effectiveness of purchasing in your company.
2. Prioritize product groups.
The prioritization of product groups and the associated development of a product group strategy enables focused action from a strategic perspective. In this context, an overarching purchasing strategy and a clear definition of short, medium and long-term goals that are aligned with the corporate strategy or corporate vision form the basis for successful strategic purchasing.
3. Establish supplier management.
Another important step in the transformation of your purchasing department is the development of a supplier strategy and the establishment of supplier management. The initial aim is to use a supplier classification system to have selected suppliers who not only deliver cost-effectively and without quality defects as a result of ensuring production capacities, but who can also take on complete assemblies and are therefore competent partners in development with the corresponding innovation potential.
The concept for success here also includes establishing a compliance risk management system that records and monitors all relevant risks associated with suppliers using KPIs and implements appropriate measures to minimize risks.
4. Calculate the TCO.
An analysis of all purchasing processes and the associated realignment of processes along the value chain will help you ensure that all possible costs are taken into account. However, this requires the development of a total cost of ownership calculation (TCO) and the positioning of purchasing as a value generator. The aim of the process change is to make purchasing processes more agile and at the same time to define and establish standard processes for purchasing.
5. Establish purchasing as an interface manager in the company.
Another approach in the transformation of procurement is to establish the procurement organization as a cross-functional area in the company, in which procurement assumes the role of an interface manager.
6. Digitize procurement.
Digitization represents an additional opportunity to optimize procurement. The use of e-procurement systems or other AI-based technologies not only drives the transformation in procurement, but also increases its efficiency in the medium and long term, which represents a clear competitive advantage. The digitalization of procurement should therefore be part of the transformation strategy from the outset.
7. Organize further training for buyers.
A final component of the transformation of procurement is the qualification or further training of buyers. The starting point should be an employee potential analysis. On this basis, it is then possible to carry out targeted purchasing training or courses on topics such as negotiation skills and contract law, depending on the skills of the individual purchasing employees.
