Why Procurement Excellence?
Simply put, a Procurement Excellence organization is dedicated to business development in procurement. The goal is to improve and boost strategies, processes, methods as well as tools and competence so procurement can increase output and deliver more value.
Procurement Excellence’s mandate is often broad and can range from strategic purchasing development and compliance through process development and change management to digitization and strategies for sustainable purchasing.
Procurement Excellence ensures that procurement is efficient, value-driven, and that both strategy and operations align with broader business goals. Additionally, Procurement Excellence serves as a support pillar that provides category managers, tactical buyers, and other stakeholders with the best tools, insights, and structures necessary to make informed purchasing decisions.
An important part of its role is also to drive competence development, to ensure that buyers in the organization have the skills and knowledge they need to succeed in their roles as the world changes.
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Support for better procurement
Procurement Excellence is more than just a refined methodology within strategic procurement; it is rather the orchestration of strategies, opportunities, operations and short- and long-term activities that optimize value creation.
- Value-focus – Procurement Excellence increases both capability and output, in the short and long term
- Efficiency – Procurement Excellence arms procurement professionals with the right tools, processes and strategies to maximize value creation
- Strategic direction – Procurement Excellence ensures that improvement activities and initiatives are anchored in the company’s vision, goals, and overall strategies
The Procurement Excellence approach is holistic and open-minded. By acting as the bridge between operations and strategy, Procurement Excellence ensures that initiatives are synchronized, forward-leaning, innovative, and drive continuous improvement.
Organization and roles
In most organizations, Procurement Excellence is a separate team within the procurement organization. It is rare to be both a specialist in an area of operations as well as being able to drive business development and change. To put it bluntly: there is a difference between building a car and driving a car. By hierarchically placing Procurement Excellence parallel to strategic, tactical, and operational procurement, the team is not limited by the day-to-day activities of procurement but can act as a link between operations and the company’s strategic goals.
Procurement Excellence aims to ensure high quality throughout the procurement process and thus increase value creation at all levels. By ensuring that decisions are not made in isolation but are in line with the company’s overall strategy, Procurement Excellence also plays a crucial role in minimizing risk and supporting the company’s competitiveness.
A dedicated team creates value on many levels
- Specialization – Focused business development aimed at optimizing procurement provides the organization with support from a team capable of leading change
- Standardization – A dedicated team ensures consistency and standardization of processes, tools, and methods throughout the end-to-end procurement process
- Strategy – When the mandate extends throughout the procurement organization, Procurement Excellence ensures that strategies are aligned with the company’s overall goals, optimizing cost and value creation while minimizing risk
- Continuous improvement – Procurement Excellence aims to constantly develop and refine both processes, methods and the use of tools/technology. This allows the procurement organization to be at the forefront of best practice
- Competence development and coaching – Procurement Excellence focuses on positive change and systematically works to develop the right competencies. This ensures that everyone within the procurement organization has the right skillset and knowledge to generate optimal value
Benefits of Procurement Excellence
Procurement Excellence works horizontally in the procurement organization, and has a birds-eye view to identify opportunities for improvement. This benefits the entire operation in several ways.
- Support, not ownership – Procurement Excellence is a support function that provides the organization with the right knowledge, optimal processes, and tools, as well as best practice to enable the organization to make the right decisions and act independently
- Clear direction, executed at all levels – Business units have the freedom to act independently with the support of standardized processes, methods, and best practices that align with the company’s procurement strategies with overall strategic goals
- Deep insight and data-driven analysis – Procurement Excellence is a hub for data-driven analysis and possesses an analytical ability that may not exist in the operations. This makes Procurement Excellence the ideally placed to identify bottlenecks, opportunities, and potential
- Synergy effects – Procurement Excellence operates across the organization, allowing the team to be well placed to identify common needs or redundancies. This allows the procurement organization to optimize resources and identify potential activities or categories that are best handled centrally
- Change management – By leading in both innovation and business development, the team can focus on spreading a positive culture that aligns with overarching visions and strategies while the entire organization benefits from everyone pulling in the same direction
A selection of customers by industry
Automotive
BorgWarner
CEVT
Kongsberg Automotive
Toyota MH
Energy, Real Estate & Construction
Bravida
NCC
Vattenfall
IT & Telecoms
Arelion
Axis Communications
Eltel Networks
Mycronic
Retail & Food
Ahlsell
Coop Sverige
ICA Gruppen
Menigo
Public Sector
City of Gothenburg
City of Mölndal
Swedavia
Systembolaget
Processing & Manufacturing
Boliden
Envirotainer
Lesjöfors
Services
High Chaparral
ISS
Kunskapsskolan
Samhall
Other
Bankgirot
MTR
OneMed
Stena Line
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