The way a function is organized impacts how effective it is at delivering against established priorities and fulfilling the role the company expects from it. In this report, we examine organization models for procurement and vendor management teams including level of centralization, reporting lines, responsibilities, and capabilities. We discuss intersections and interactions between and among procurement, vendor management and other groups. Our report also presents best practices that procurement can follow to re-envision its role – shifting significantly toward a trusted advisor and business enablement role, underpinned by analysis and market insight – while continuing to streamline the operational components of the function.