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Procurement Must Prioritise Collaboration to Gain More Trust and Demonstrate Value – Economist Impact and SAP research

Procurement must look to collaborate more if the function is to “gain the trust of fence sitters” and demonstrate more value to organisations, according to Economist Impact and SAP research. 

‘Decoding Confidence in the Procurement Function,’ explores how procurement is being transformed to meet existing and emerging challenges.

It reports how executives perceive the performance of procurement today and how it needs to evolve. 

In a vote of confidence tick, the research found, nearly 70% (69.6%) of respondents regard the procurement function’s insights as essential for implementing an organisation’s strategy, but just over half (53.2%) of the respondents agree that procurement is effectively collaborating with the rest of the organisation to meet the company vision. 

When it comes to procurement’s ability to manage risks internally,  64% of executives and middle managers were unconvinced. 

Five strategies for procurement to raise its profile

SAP suggests five strategies, procurement can use to demonstrate its value, to create a collaborative environment, and gain the confidence of both executive stakeholders and internal buyers.

  1. Collaboration with executive stakeholders: Proactively collaborate with executive stakeholders both internally and externally to earn the confidence of fence sitters in procurement.
  1. Early engagement with the business: Get involved early in the process to avoid being limited to a ‘price reducer’ role. Understand the needs of the business units, meet stakeholders face-to-face, and explain how they can engage with procurement.
  1. Breaking down barriers: Work with stakeholders to understand the impact of procurement processes on business results. Find ways to break down barriers and make the procurement process more seamless for better outcomes.
  1. Addressing internal risks: Collaborate with executive stakeholders to address internal risks such as strategic initiatives, organization alignment, insourcing and outsourcing strategies, internal relationships, and forward-looking views.
  1. Improving the procurement experience for internal buyers: Enhance the user experience for internal buyers by leveraging emerging technologies and procurement solutions that provide a seamless and personalized buying experience while ensuring compliance with corporate policies.

Read SAP’s ‘Taking the Measure of Procurement’s Effectiveness to Improve C-Suite Confidence.’

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