procurement technology

Procurement Technology

At TKJ Procurement the procurement transformation process starts with our Capability and Maturity Model (CAMM) assessment.

The CAMM assesses the enabling technologies employed in the procurement environment; the sub-capabilities considered includes the assessment of technology in the Source to Contract cycle as well as the Purchasing to Payment value chains.

Our assessment considers how technology solutions are used and the level of automation.

Procurement Technology Solutions in and of itself does not result in procurement maturity, in our experience to achieve procurement maturity technology solutions should be enabling the procurement strategy. The value of procurement technology should not just be to do more with less, rather the full value of procurement technology solutions are when the procurement department is able to do things that it could not or did not do before. This includes achieving objectives such as:

  • Generating Management information to ensure effective oversight and improvement across the value chain.
  • Driving procurement efficiencies
  • Driving a strategic and collaborative business partner
  • Creating value for your client.
  • Designing, developing, and implementing holistic and sustainable solutions which match the organizational objectives

Before embarking on a roll-out of procurement technology solutions we suggest managers answer these questions:

  • How does the procurement technology achieve the objectives of the company’s business strategy?
  • Is a company Data Strategy or Data Governance approach available to support the effective usage of the procurement technology?
  • Is a plan available to acquire or grow the skills that the company will require to support the procurement technology strategy?
  • Is a plan available for training, retraining or re-skilling of employees whose positions become redundant due to automation?
  • Does the technology strategy spell out the infrastructure requirements to support the strategy?
  • Is a plan available to manage and deal with unintended consequences of procurement technology solutions implementation?

Over the next few months, I will unpack how procurement technology solutions can contribute to procurement maturity and what organizations can and must do to make this possible. | |