The distinguishing factor between high and low maturity procurement teams is….

Q: How can procurement teams enhance their maturity level?

Advancing procurement maturity involves:Developing a comprehensive understanding of internal business functions.Building and maintaining strong relationships with internal stakeholders.Implementing structured procurement processes and leveraging technology.Fostering a culture of continuous improvement and strategic alignment.

Q: What steps can organisations take to improve procurement maturity?

Organisations can:Invest in training and development for procurement staff.Implement standardised procurement processes.Leverage technology for data-driven decision-making.Foster a culture of collaboration and continuous improvement.

What differentiates a good procurement function from a great procurement function?

Our 2024 Annual Procurement research, Stronger Together, looked at what differentiates a good procurement function from a great procurement function. There is one thing that really stood out. It’s the relationships within the organisation that matter! Our research reveals that the most significant factor distinguishing high maturity procurement teams from their lower maturity counterparts is their ability to deeply understand and build strong relationships with the business areas they support. This might be a bit counterintuitive as many assume the key to being a successful procurement manager may be the understanding of the external market environment and suppliers. However, it is indeed the ability to work effectively with internal teams that makes the biggest difference.

Initiative	Low maturity teams	Medium maturity teams	High maturity teams
Procurement staff have a deep understanding of the business areas they service	21%	53%	94%
Procurement staff have strong relationships with the business areas they service	25%	37%	94%

Figure 1: Percentage of teams that their initiatives have been fully implemented and deliver clear benefits. Figure 1 above demonstrates that a key ingredient to move from a low to a medium maturity team is the ability to foster a deep understanding of the business area the procurement team services. And while 53% of medium maturity teams say that this is implemented and delivering benefits for them, the step up to high maturity teams is again quite significant as 94% of those teams report that they get clear benefits from their understanding of the business. While the percentage of teams with strong relationships increases significantly from medium to high maturity, a solid understanding of the business is a prerequisite for forming these relationships effectively. The results of our research weren’t a complete surprise to us as we have been seeing more and more evidence that it is the soft skills rather than the technical skills that count in modern day procurement functions. But see for yourself and have a read of Stronger Together or ask Dr Stefan Gassner more about soft skills by booking a meeting.

What defines a high maturity procurement team?

A high maturity procurement team demonstrates a profound understanding of the internal business areas they support, fostering strong relationships and delivering clear benefits. This approach contrasts with lower maturity teams that may lack deep business integration.

How can procurement teams enhance their maturity level?

Advancing procurement maturity involves:

Developing a comprehensive understanding of internal business functions.
Building and maintaining strong relationships with internal stakeholders.
Implementing structured procurement processes and leveraging technology.
Fostering a culture of continuous improvement and strategic alignment.

What impact does procurement maturity have on organisational performance?

Organisations with high maturity procurement teams experience improved efficiency, cost savings, and enhanced supplier relationships. These benefits contribute to overall business success and competitiveness.

What role do relationships play in procurement maturity?

Strong internal relationships are crucial for high maturity procurement teams. They facilitate better collaboration, alignment with business objectives, and more effective decision-making.

How does understanding the business areas affect procurement effectiveness?

A deep understanding of the business areas allows procurement teams to anticipate needs, tailor strategies, and deliver solutions that align with organisational goals, leading to more effective procurement outcomes.

What are the key characteristics of low maturity procurement teams?

Low maturity procurement teams often operate reactively, have limited business integration, and may lack structured processes, resulting in inefficiencies and missed opportunities.

Can procurement maturity be assessed?

Yes, procurement maturity can be assessed through frameworks that evaluate aspects like process standardisation, stakeholder engagement, technology utilisation, and strategic alignment.

What are the benefits of transitioning to a high maturity procurement team?

Transitioning to a high maturity procurement team can lead to:

Enhanced operational efficiency.
Better alignment with business strategies.
Improved supplier performance.
Increased cost savings.

How does technology influence procurement maturity?

Technology enables automation, data analytics, and improved communication, which are essential for advancing procurement maturity and achieving strategic objectives.

What steps can organisations take to improve procurement maturity?

Organisations can:

Invest in training and development for procurement staff.
Implement standardised procurement processes.
Leverage technology for data-driven decision-making.
Foster a culture of collaboration and continuous improvement.