By Andreas Marathovouniotis
Procurement is being disrupted and opportunities exist to reinvent the procurement function as a more agile, data-driven, collaborative and relevant force.
Dipan Karumsi, KPMG’s U.S. Procurement Advisory Practice Lead, recently presented at the Coupa Inspire'19 conference in Las Vegas on the future of procurement, and what must happen for it to bring the frictionless delivery of goods and services across the business, creating a user-friendly experience.
User interfaces and customer-centric designs will enable employees and procurement teams to enjoy the same convenience, simplicity, and speed at work that they have at home. Procurement of the future will be the enhanced relationship between customer and suppliers. Technology will let suppliers see more of the process, giving them more opportunities to self-serve and deliver products and services in increasingly efficient ways. Having access to real time data, suppliers will be ready and able to integrate their business to an organization’s needs and be more responsive and relevant.
“It is more critical than ever for companies to build a future-ready, self-service focused, frictionless procurement function that streamlines processes and aligns with the organization’s business objectives,” said Karumsi.
Over time, procurement will become virtually invisible to customers. Procurement will digitally self-monitor, using spend and contract analytics to prompt timely renewals, streamline processes and identify anomalies.
Here are the five characteristics of a future-ready procurement function:
1. A cross-functional team is in place that continuously drives content enablement and proactively eliminates obstacles to efficiencies to drive self-service purchasing.
2. Purchasing and supply managers are empowered with insights to fully understand the results of their work on the end-product and/or service, giving procurement more control and enabling the department to advise the business as an internal partner.
3. The current structure and processes allow for smooth, fast and reliable decisions, even in stressful circumstances, or when time is of the essence.
4. Procurement works collaboratively with suppliers, harnessing their brainpower to capture innovation and create an ecosystem that ensures success over the short, medium and long terms.
5. Procurement and employment happen locally, while also developing and utilizing value creation and ecosystems within the local economy. Globalization and localization are combined to create an enterprise specific balance.
Dipan Karumsi is the U.S. Procurement Advisory Practice Lead at KPMG’s Procurement & Operations Advisory practice. For more information or to arrange an interview, please contact Andreas Marathovouniotis.