What technology solutions does your procurement organization use? Procure-to-pay? E-invoicing? Are supply chain practices connected to your company’s accounts payable processes via a cloud-based network solution? Or, is your organization still relying largely manual processes and paper invoices?
The answers to these questions can shine a light on the maturity level of your procurement organization. In the recent Spend Matters research paper, Reframing Maturity Models: Empirical Perspectives On Radically Improving Procurement Performance, developed in partnership with Tradeshift, we provide a way for procurement organizations to self-assess their maturity levels.
The goal of any procurement organization should be to reach a high level of maturity, where the team is using sophisticated technology solutions that automate workflows and bring significant efficiency gains for the department and business as a whole. But before an organization can determine how to improve, it must first understand where it sits now on the maturity scale.
Jason Busch, Spend Matters founder and head of strategy and the author of the research paper, said the stages of the procurement transformation can be as important as the end point.
“What’s really valuable is to understand the art of the possible,” Busch said. “And that is where things have really changed with technology — with the haves and have-nots taking a different approach to using solutions, engaging the business and managing supplier.”
The assessment tool gives organizations a way to see where they stand on the e-procurement, accounts payable and invoicing and supplier management maturity scale. It also offers a maturity model for overall procurement technology adoption in companies. The organization’s current technology environment is taken into consideration in the assessment, as well as how the team currently works with and manages suppliers.
For instance, is your current technology environment dominated by suites and virtualized suites? If yes, you can give yourself three points. Or, does your organization lack system automation and integration with other functional areas? And do you have limited usage of e-procurement tools and online supplier systems? If so, you only get one point there.
Adding up your points in each area included on the assessment will place you somewhere on the maturity scale. Perhaps your organization ends up being on the low end of the scale but still has a clear focus on automation. Or you find your organization is higher up on the maturity scale with clear focus on business value and alignment. Download the research paper, Reframing Maturity Models: Empirical Perspectives On Radically Improving Procurement Performance, to find out where your organization falls.