Where does your organisation REALLY sit? Miroslav Pitlanic, Founder of SPL Partners, explores the 7-Level Procurement Maturity Model.
Every CPO thinks their procurement function is “strategic”. Most are wrong.
I’ve assessed dozens of procurement functions. The gap between self-perception and reality? Massive.
Here’s a maturity model that cuts through the noise. No buzzwords. No wishful thinking. Just honest levels. Read on to find out where you really stand.
The first step to transformation? Admitting where you actually are.
Which level resonates with your current reality?
Level 1: Chaos
“Just buy what we need”
No process. No strategy. Everyone does their own thing. Procurement = ordering.
You’re bleeding money and you don’t know it.
Level 2: Control
“Let’s have some rules”
Basic processes exist. Compliance is the goal. Procurement = policing.
Better than chaos, but still reactive.
Level 3: Coordination
“Let’s work together”
Categories get managed. Contracts get tracked. Procurement = administration.
Organised, but not strategic.
Level 4: Collaboration
“Let’s involve stakeholders”
Early engagement happens. Business needs drive decisions. Procurement = partnerships.
Now we’re getting somewhere.
Level 5: Optimisation
“Let’s maximise value”
Data drives decisions. Innovation gets captured. Procurement = value creation.
This is where leaders operate.
Level 6: Integration
“Let’s shape the business”
Procurement influences strategy. Suppliers become partners. Procurement = competitive advantage.
Few organisations reach here.
Level 7: Transformation
“Let’s change the game”
Procurement drives business model innovation. Creates new revenue streams. Procurement = growth engine.
The ultimate goal.
The truth?
Most organisations think they’re at Level 4-5. Most are actually at Level 2-3.
The gap between perception and reality? That’s where the opportunity lives.
Be honest: What level is your procurement really at? Not where you want it to be, but where it actually is today.
Share this with your CPO. Let’s start the real conversation.
Follow Miroslav Pitlanic for more actionable procurement insights.
