{"id":28272,"date":"2025-02-05T16:25:22","date_gmt":"2025-02-05T15:25:22","guid":{"rendered":"https:\/\/www.iungo.com\/?p=28272"},"modified":"2025-02-05T16:25:22","modified_gmt":"2025-02-05T15:25:22","slug":"evolution-of-procurement-strategic-partner","status":"publish","type":"post","link":"https:\/\/www.iungo.com\/en\/evolution-of-procurement-strategic-partner\/","title":{"rendered":"The evolution of procurement: from operational costs to strategic partner"},"content":{"rendered":"<p><span style=\"font-size: 16px;\">The 2024 IUNGOforum focused on the central theme of \u201cLeading the Change\u201d, highlighting procurement\u2019s key role in driving organizational transformation. During the event, Chief Procurement Officers (CPOs) have shared their experiences and perspectives on the necessary changes to transform procurement in a strategic partner for the company, going beyond the traditional focus on costs.<\/span><\/p>\n<h3>The evolution of procurement towards a strategic role<\/h3>\n<p><span style=\"font-size: 16px;\">Collected data show that procurement is no longer simply considered a cost control center. Only 25.45% of companies still hold a traditional view on procurement, focused on cost and order management. The majority, however, perceive a shift: 32.73% of companies consider procurement to be a strategic element, focusing on adopting new tools, processes and skills.<\/span><\/p>\n<p><span style=\"font-size: 16px;\">This transformation reflects the importance of an increasingly proactive role, aimed at generating value for the entire organization and strengthening the resilience of the supply chain.<\/span><\/p>\n<h3>Essential skills for facing current challenges<\/h3>\n<p><span style=\"font-size: 16px;\">In order to support this evolution, procurement managers must develop a set of skills that align with the market\u2019s new challenges. Specifically, the interviewed CPOs have highlighted the importance of the following areas:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 17px;\"><strong>Data analytics (18.64%)<\/strong> &#8211; The ability to analyze and interpret data is fundamental for optimizing strategic decision-making and improving performance.<\/span><\/li>\n<li><span style=\"font-size: 17px;\"><strong>Continuous learning (15.25%)<\/strong> &#8211; With technology and markets rapidly changing, an approach focused on continuous improvement is essential to maintain competitiveness.<\/span><\/li>\n<li><span style=\"font-size: 17px;\"><strong>Cross-functional collaboration (11.86%)<\/strong> &#8211; The synergistic collaboration across various business functions enhances a more integrated supply chain management.<\/span><\/li>\n<li><span style=\"font-size: 17px;\"><strong>Supplier management and negotiation (10.73%)<\/strong> &#8211; Being able to build solid relationships and negotiate effectively helps create added value and stability across the entire supply chain.<\/span><\/li>\n<\/ul>\n<h3>Goals and benefits of procurement transformation<\/h3>\n<p><span style=\"font-size: 16px;\">Data clearly show that a strategic approach towards procurement can lead to numerous benefits for companies. Among the main detected benefits:<\/span><\/p>\n<ul>\n<li style=\"list-style-type: none;\">\n<ul>\n<li><span style=\"font-size: 17px;\"><strong>Increased time for strategic tasks (23.53%)<\/strong> &#8211; By optimizing operational tasks an delegating routine activities, procurement professionals can focus on tasks that carry an increased strategic impact.<\/span><\/li>\n<li><span style=\"font-size: 17px;\"><strong>Improved supplier relationships (17.65%)<\/strong> &#8211; Supplier relationship management is strengthened, enhancing the development of stronger and more reliable partnerships.<\/span><\/li>\n<li><span style=\"font-size: 17px;\"><strong>Cost reduction and increased supply chain visibility (15.29 %)<\/strong> &#8211; Proactive procurement allows for increased visibility across the supply chain and for identification of optimization opportunities.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3>Conclusions<\/h3>\n<p><span style=\"font-size: 16px;\">The 2024 IUNGOforum has attested that procurement is undergoing a deep change. Procurement managers are called on to be the drivers of an evolution aimed at making the supply chain more efficient, resilient and strategic. Developing new skills, adopting innovative methodologies and building strong partnerships are all fundamental elements for facing future challenges and ensuring the creation of sustainable value for the company.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The 2024 IUNGOforum focused on the central theme of \u201cLeading the Change\u201d, highlighting procurement\u2019s key role in driving organizational transformation. 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