CHANGE MANAGEMENT FOR PROCUREMENT

Embracing a procurement technology is a process that requires the same careful consideration and thoughtful pacing as the processes before it. When organizations leave their procurement unit desolate, the results are often dissatisfying. Slow or partial adoption, internal disagreement and miscommunication flow as procurement struggles to get the rest of the organization on-board. Change management for procurement makes this difficult process simple, makes the transition easy and provide for continuous growth. Even a slight technology upgrade needs major changes.

In the past it was said that in its primary role of engaging with suppliers, procurement worked on the forefront of the business. But, while procurement continues to engage with suppliers, it has expanded its role considerably over the past several decades, from being administrative to being strategic. Procurement has moved to the concern of high performing businesses and this move has brought with it the areas where procurement can make a clever impact. Successful businesses have certain strategic commands that need to outshine in today’s competitive and unstable business environment.

Modern procurement experts are extensively working together throughout their business organizations and supply systems and are also manipulating technology in the areas of strategic sourcing, commodity and supplier management, financial savings and contract management and acquire-to-pay, to operate competitive performance along many of these strategic directions. By skillfully contributing in important strategic areas, change management for procurement has become a key component of business performance within organizations across globe.

To become an operator in strategic business initiative, procurement needs to connect the abandoned dots to attain the complete transformation picture. Procurement experts realize this and many organizations have already put processes in place to materialize this transition. Automation has always stood at the leading edge of any procurement transformation project, but whether the technological skills available have been harnessed to their maximum potential to achieve appreciable benefits is a question best left without reply.

LEVERAGING THE RIGHT TECHNOLOGY

Detached automated solutions implemented in confinement usually don’t achieve anything but a little increase in operational efficiency. Change management for procurement is a process whereby programmed solutions in the entire procurement cycle from market analysis of suppliers to the final purchase order are brought together in a logical workflow to achieve organizational strategic goals.

Procurement professionals and industry experts believe that the necessary change of procurement processes can be achieved only if there is a switch to automated systems. Operational activities have to be completely shifted to automated systems to enable procurement to attend to strategy driven activities. Ensuring computerization of processes like accessing of commodities to the right suppliers, ensuring conformity to contracts, managing suppliers and enhancing visibility into organizational investment is the keystone of any transformation initiative which hopes to be more than demonstration.

Influencing correct technology will not only help procurement in inflating efficiency in current synopsis but also build a sturdy procurement infrastructure to deal with future confusions. A successful change management program in procurement needs a reliable plan to get it safely over the goal. These programs execute new ways of working and leverage new technologies and processes to establish more effective strategies.

PREVENTING FAILURE IN A CHANGE MANAGEMENT INITIATIVE

Although an ideal shift is seen in the procurement space, still a large number of organizations prefer to use computer programs. Procurement is always about moving and growing faster, boosting relations with suppliers and finding out excusive ways to achieve considerable savings target. This requires the skill to adjust to changes that come up. Failure can be avoided when change management comes into picture:

• Managing Resistance –

Managing resistance is strenuous. It involves being in contact with your surroundings while trying to adjust to new processes. Visualize your challenges and disapprovals that you might face from your stakeholders and find temporary solutions for them.

• Engage Stakeholders –

Involve all your stakeholders from the beginning to ensures that the whole team is in agreement throughout the project. Assimilate a culture where every individual understands his responsibilities, roles and outcomes of the future change.

• Training & Support –

Make sure training sessions are held as well as attended by all stakeholders soon after the application of new technology. Share all the procedures how consumers can get support for their queries. Be patient and be of assistance to all the stakeholders who might have difficulty in adjusting. This will ensure quicker adaptation of the applied technology.

Change management for procurement is not only about changing a process. It’s also about changing people, their work style, their nature and making them more goal oriented.