Disruptive Procurement by unknow

Author:unknow
Language: eng
Format: epub
ISBN: 9783030389505
Publisher: Springer International Publishing

Agile Procurement Organizations

An agile organizational setup in procurement means that select teams work with the agile methodology. These teams do a large part of the tasks typically performed by the category management team but do so with techniques such as huddles, scrums and sprints. The teams are set up this way to keep procurement from focusing too narrowly on categories. The teams help procurement increase process efficiency, cut back on downtime between tenders and engage better with suppliers.

Typically, the teams are staffed cross-functionally to ensure diverse thinking but also to make sure cross-functional objectives and decision-making power is properly represented. Teams may have specific objectives such as doing “should-cost” calculations, designing the negotiation strategies using game theory, or getting a particular sourcing job done faster. Frequently, teams are set up for a short period of time or for specific events. With an organization that supports an agile approach, companies can replace suppliers with new ones faster, which can lead to cost savings.

Often, teams working in this manner have specific competencies related to the objective but do not have specific category know-how. Therefore, in modern procurement organizations, these teams will move from category to category to challenge the status-quo and find ways to deliver new value.

Agile teams must work fast and flexibly and need powerful digital tools at hand, such as project management tools and category or process-specific tools. The tools must be accessible to all team members and include real-time information to enable fully automated cross-functional interactions. In addition, working with such teams requires a leadership style that rewards people for taking their own initiatives, accepts failure and congratulates success.

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