As procurement functions have been forced to become much more flexible and responsive in wake of global events, it has prompted executives to re-evaluate the current structure of their procurement functions and their desired Target Operating Model.

Whether procurement is centralised or de-centralised, managed locally or globally – a Target Operating Model which establishes clear governance, accountability and direction for the procurement function is crucial.

A high-performing procurement organisational structure must be focused on risk management, ensuring agility and driving efficiencies for the business.

Core Procurement process chart

We work with small local and large multi-national organisations to identify the optimum Target Operating Model for their procurement function.

The benefits include:

  • Gap analysis of resources and functional areas
  • Insight of industry benchmarking as ‘what does good look like’
  • Clear understanding of reporting lines across the functional areas
  • Ensures that group scale is leveraged and maximised
  • Sharing of best practice and skills across the organisation
  • Improved procurement governance
  • Developing the Procurement Business Partner role

Current Operating Model Assessment – Undertaking a structured assessment of FTE numbers, spend and supply chain complexity in order to better understand the overall resourcing levels across the organisation. We also assess the different Operational and Functional reporting lines (both dotted and solid) to evaluate the level of procurement governance.

Target Operating Model – We work with clients across all of their local and/or global Business Units to establish the desired Target Operating Model. This will determine whether the procurement function is centralised vs decentralised, global vs regional or local, functional vs operational and whether it should include a Centre of Excellence.

Future Roadmap – We provide recommendations based on where teams are located, how procurement is managed and the number of resources required to deliver Procurement Excellence. Together with the client, we develop a roadmap for implementing organisational changes in a structure and sensitive way in order to achieve procurement efficiency gains.

Contact Us

We build long-term partnerships with our clients that deliver ongoing cost reduction and continuous improvement in procurement. If you would like to know more about how that works for your business then please get in touch: