A high-performance procurement team includes top talent, metrics, and systems to continually grow value.

Most companies are already using experiential and classroom training, including certification programs, to keep their procurement teams’ skills up to date in most basic areas such as negotiations, sourcing processes, and pipeline management. Many have also made considerable investments in tools and systems to measure the performance of the procurement function as a step along the path to implementing an accountability culture.

A few leading companies are going even further:

Tailoring an operating model that drives deep collaboration between procurement, functional, and business teams
Fostering a learning environment focused on continuous improvement
Encouraging experimentation to challenge the status quo and do things differently

Leaders selectively outsource lower-value tasks to prioritize their focus on strategic activities. Leaders also link procurement’s initiatives and benefits (and measurements) to the company’s overall strategy and profitability.

Pioneering companies with top talent and advanced tools can achieve and reliably deliver 7-to-1 annual returns on their supply management assets.