In this issue
10 January 2020:

Transforming the Procurement Department

Introduction

TKJ Procurement Consulting and Training (Pty) Ltd was formed in September 2017 with the purpose to elevate procurement departments to become an integral partner in driving business strategy, make impactful contribution to the bottom line and drive effective risk management of the organisation.

Based on our procurement capability and maturity assessments conducted over the past two years, we observe that procurement continues to be seen as a buying function and as a result most companies do not harness the strategic value of their procurement departments. Another observation is that procurement often is seen as a stumbling block to achieving business strategy instead of an enabler to achieving the business strategy.

Transforming the Procurement Department

  • Position the procurement department as a  strategic and collaborative business partner through sustainable value creation.

  • Create value for your client through transformation projects that enable improvement in the maturity and capability of the supply and procurement value chain.

  • Build agile business processes and systems to drive procurement efficiencies

  • Design, develop and implement holistic solutions which are sustainable and match the organizational objectives

  • Use management information to ensure effective oversight and improvement across the value chain;

  • Develop skilled resources to deliver the Procurement strategy.

Procurement transformation refers to a specific type of organizational change management which focuses on strategies to enable major and long-term improvements to procurement and supply management processes, activities and relationships”

(Day and Atkinson, 2004).

A transformed procurement department provide the organization with a competitive advantage in that the entire Source to Pay process is efficient and highly collaborative. The TKJ Procurement Capability and Maturity Model (CAMM) has been devised to enable development across the end-to-end procurement value chain, addressing people, process, systems and structure in line with industry best practices. Our assessment highlights strengths as well as development needs, and the resulting action plans for implementation into everyday operations for continuous improvement. Over the next few months I will unpack each step in the transformation process.

janineh@tkjprocurement.com | etienneh@tkjprocurement.com | www.tkjprocurement.com