Procurement as a Service (PRaaS) — Part 4: Assembling Third-Party Services

supplier network James Thew/Adobe Stock

In our previous installment of this series, we discussed how an industrialized procurement as a service (PRaaS) model is critical to not just running procurement more efficiently and effectively but also buying and embedding cloud services better, as well as tie procurement into broader digital business strategy efforts. The notion of procurement as a “prosumer” (producer and consumer) of procurement services is both the DNA of modern procurement itself and of global business services.

Procter & Gamble is a great example. P&G was one of the pioneers of the global business services (GBS) model, and its current capabilities here are impressive. What’s also interesting about P&G was when its CEO drove the “connect and develop” program of open innovation to tap supply markets for product innovation and looking beyond internal R&D.

So, if R&D can do that for itself, shouldn’t procurement be able to do the same? And isn’t it even more important for procurement to do so when considering that nearly all supply market innovation tied to supplier spending is in play? Wouldn’t it be important for procurement to lead by example in aggressively adopting such third-party services and also to share best practices around how other internal stakeholders in various spend categories are doing the same? You bet. This makes procurement an innovation gate opener rather than a policy gatekeeper.

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