Procurement leaders are discovering the power of rethinking operating models to streamline processes, engage stakeholders, and create measurable business impact. Even small changes can deliver transformative results.
The Core of Effective Operating Models
An operating model serves as the backbone of procurement, defining how teams deliver value through structure, processes, technology, and talent. It is not just a static framework—it’s a system that evolves to align with changing business objectives.
For procurement teams aiming to enhance efficiency, the first step is to understand resource allocation. Where is time being spent? Which processes or categories consume the most effort but yield the least value? The ability to answer these questions is essential to reconfiguring the operating model.
For example, a team may discover that a significant portion of its time is spent on low-impact transactional activities, such as repetitive supplier reviews or outdated reporting processes. By redirecting even a fraction of this effort toward strategic priorities—like supplier collaboration or cost-reduction initiatives—the team can dramatically improve its outcomes.
Where Small Adjustments Lead to Big Wins
One of the most effective ways to drive procurement transformation is through simplification. This includes eliminating redundant tasks, automating routine activities, and rethinking process structures to improve efficiency.
A common challenge is managing purchase requests for low-value, frequently ordered items. Transforming this process into a self-service model supported by automation can free up significant capacity for more impactful activities. Stakeholders benefit from faster, more convenient processes, while procurement professionals can focus on complex priorities like supplier innovation or sustainability initiatives.
Talent allocation is another area where small changes can yield large returns. If high-value resources are tied up in administrative tasks, reassigning them to strategic projects or high-impact categories can unlock new opportunities. The goal is to align talent with areas that generate the most value.
Building Engagement as a Competitive Advantage
Procurement’s success is often tied to its ability to engage with internal stakeholders. True engagement involves more than simply processing requests or enforcing policies—it means building trust, understanding business priorities, and influencing decisions in meaningful ways.
A more formalized approach to business engagement can include consistent communication that reinforces procurement’s value, tools that make processes intuitive for stakeholders, and team members who excel at relationship-building. By positioning procurement as a partner, rather than a gatekeeper, teams can foster greater collaboration and compliance across the organization.
This level of engagement requires stepping into the shoes of stakeholders to understand their needs. For instance, a procurement team could invest in user-friendly technology to streamline purchasing processes, reducing frustration and encouraging alignment with procurement policies. Engaged stakeholders are more likely to view procurement as an enabler of success rather than a roadblock.
The Courage to Let Go
One of the most challenging but impactful actions procurement leaders can take is to stop doing things that no longer add value. This requires a willingness to challenge established norms and retire processes that no longer align with strategic objectives.
For example, if a process consumes a significant percentage of the team’s time but delivers minimal impact, it may be time to sunset it. This doesn’t mean abandoning due diligence—it means reallocating resources to areas with greater potential. Using automation or outsourcing can help manage this transition without compromising operational integrity.
Redefining Procurement Success
Transforming an operating model isn’t about wholesale changes or large-scale overhauls. Instead, it’s about understanding where the current model falls short and making targeted adjustments to enhance efficiency, engagement, and value.
Start by conducting an audit of how time and resources are spent. This will provide insights into areas where processes can be automated, outsourced, or eliminated. Align your operating model with the business’s priorities by understanding stakeholder objectives and adjusting resources to support them.
Automation should be implemented thoughtfully, focusing on repetitive, low-value tasks to free up capacity for strategic initiatives. At the same time, building a formal approach to stakeholder engagement can improve procurement’s alignment with business goals. Regularly reassessing the operating model ensures it evolves alongside organizational needs and continues to deliver results.
By addressing these areas, procurement teams can transform their operating models into dynamic, strategic frameworks that drive measurable business impact while empowering teams to achieve their full potential.
