Art of Procurement 790: The Key to Doing More with Less? Evolve Procurement’s Operating Model
Mar 31, 2025
Procurement teams are under increasing pressure to maximize impact while minimizing resources. The hosts discuss the evolution of procurement operating models, revealing trends from decentralized to 'invisible' approaches. They highlight the crucial role of Chief Procurement Officers in fostering strategic relationships rather than exerting control. Strategies for creating capacity over mere efficiency are examined, along with the integration of technology to streamline processes. The conversation emphasizes collaboration and innovation as keys to navigating future challenges in procurement.
AI Snips
Chapters
Transcript
Episode notes
What Is Procurement Operating Model
- Procurement operating models define how people, processes, and technology come together to serve internal clients.
- They influence everything from sourcing processes to technology selection and stakeholder engagement.
Evolution of Operating Models
- Procurement operating models evolve from decentralized to centralized, then to center-led and now towards invisible models.
- Each stage alters procurement's role, control methods, and relationship with the business.
Plan for Operating Model Change
- When changing operating models, plan thoroughly as impacts to the business are significant.
- Expect noticeable differences; these are not incremental process tweaks but fundamental shifts.