David McGimpsey
Adrianna Landvik answered 2 years ago
Every business needs to procure goods or services to operate and each of these purchases contributes to some kind of value creation for the business. Now, the implementation of a procurement maturity model can help organizations to understand where they are today, where they should be in the future, as well as the value in doing so and how to get there.
Such models are mostly used to assist organizations in setting up and achieving their goals related to optimizing business processes in their procurement function, and in implementing both procurement transformation and enterprise-wide digital transformation. It also helps in better communication on the progress with the management and the company as a whole. Moreover, the procurement maturity model also helps to set realistic priorities to improve the procurement capability as well as allows to assess where a company stands versus industry peers. Such models also help to accelerate a transformation as well.
By tracking their position on the maturity curve, companies can understand where they currently stand, measure the value at that stage, and how to reach the higher stages where they will be in a position to spend smarter by leveraging advanced negotiation and “community intelligence”.
To put simply, a procurement maturity model can help a company to replace ad-hoc ways of buying with optimized and innovative sourcing practice.
You can read more about consulting procurement maturity by clicking here.
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