Procurement teams are uniquely placed organisationally giving them a clear line of sight across the value chain. As professionals, they are opinionated and ‘programmed’ to drive efficiencies, create value, and squeeze costs.
Yet despite this unique internal position, according to
studies in organisational science, 65% of innovations are sourced via external partners. Our belief is that procurement is an inherently strategic function and should be allowed to drive innovation. This approach will nudge procurement professionals into the C-suite.
So how can we achieve this shift?
- Get your team out of their seats: Innovative procurement teams create and work within inquisitive cultures. This, coupled with the fact that procurement is increasingly regarded as a ‘contact sport’, means leaders need to encourage ongoing networking/engagement with internal and external stakeholders.
- Create greater alignment with strategic suppliers: Strategically partnering with suppliers and building mutually beneficial relationships should create a strong platform and environment for innovation. Suppliers know the market, your business, and your competitors. By building trust, their knowledge can be harnessed to your advantage.
- Back your team and their ideas: Procurement teams are full of ideas – sadly, they rarely see the light of day. Procurement professionals, therefore, need the space to sell their best ideas upwards thus allowing a company to tap into this creative resource. Once a track record of successful innovation generated by the procurement team is established, the process will inevitably become easier.
- Work the numbers: Innovative moves are more likely to be backed when evidenced with clear data. As grinding through hard data comes naturally to those in procurement, working through scenarios and using numbers effectively can result in unexpected insight and generate excitement about proposed initiatives.
In summary, getting the innovation piece right not only elevates the procurement team but also delivers competitive advantage,
and drives talent retention. By getting your procurement teams to focus on innovation, you’ll get them out of their seats, into the business, and ultimately retain them!
If you would like to discuss this article in more detail, learn more about the Norman Broadbent Group, or perhaps discuss your people or organisational, please do not hesitate to contact James Peskett via
james.peskett@normanbroadbent.com