Executive summary

In-house procurement is a crucial function in any enterprise. Tasked with managing the different requirements of core and non-core spend categories, it is a significant influencer of operational costs, and consequently the bottom line as well.

As efforts around cutting costs and driving efficiencies garnered momentum, organizations started to actively pursue spend reduction in their procurement department. What started as a program to optimize direct spend in the pre-2000 era, expanded to indirect spend segments in the 2000-2010 period.

However, with rising maturity of savings initiatives and increasing focus on business agility, procurement functions are now looking beyond cost savings to driving greater impact by creating favorable business outcomes. Procurement transformation is way to unlock trapped potential and ignite a higher level of value creation.

This research focuses on understanding procurement transformation as an enabler to achieve a step-change in enterprise value creation. Key themes covered in this research are value proposition, expanse, elements, and levers of procurement transformation.