Innovation In Procurement

| Point of View

A new era of innovation in procurement process

It has become common for many companies, and for some even critical, to involve external parties in their new product development processes, suppliers in particular. The findings from the World Café session and the survey clearly show that Procurement has a vital role to play in order to make these open innovation practices successful. If Procurement wants to fulfill this role, it should change its mindset and redefine its business model. The results show that Procurement functions need adjust themselves in four  areas:

  1. Organization & Process: all findings show that if Procurement wants to turn into an innovation driven function, it needs to organize itself explicitly. Commitment from executive leaders is critical to make open innovation practices successful.
  2. Planning & Control: KPIs should be realigned to measure the contribution and impact of different functions, like Procurement and R&D.
  3. Human Resources: the right talent in the Procurement organization should be attracted and retained to let Procurement fulfill its innovation driven role. These people need strong relationship building, facilitation and moderation skills.
  4. Preferred Customer: an Innovation Driven Procurement function should persuade innovative suppliers to provide what’s needed and make them real contributors to new product development processes.

Are you ready to learn how to change Procurement into an innovation driven function? Then start reading Capgemini’s ‘Innovation in procurement’ report.