5 min read
5 Procurement Transformation Tactics to Quickly Shift Your Performance Trajectory
Philip Ideson : January 17, 2025
Let’s face it—many times we overthink the term “procurement transformation.” You might imagine sprawling multi-year initiatives, huge investments in technology, and an exhaustive overhaul of how you operate. But here’s the truth: transformation doesn’t have to mean revolution. In fact, some of the most impactful changes come from quick and targeted steps.
Inspired by my colleague Kelly Barner’s recent conversation with Aaron Addicoat, Director at AlixPartners, on the Art of Procurement podcast, I wanted to share some reflections from my own journey as a procurement transformation leader and consultant.
What exactly is procurement transformation?
Procurement transformation involves rethinking and redesigning core procurement processes, practices, and organizational structures to significantly improve efficiency and value created for the business.
Procurement transformation is about more than just making tweaks to how your team operates. It is a deliberate effort to elevate procurement from a transactional function to a strategic driver of business value. This shift involves re-engineering processes, redefining relationships with stakeholders and suppliers, and leveraging tools and technology to unlock new efficiencies and opportunities.
At its core, procurement transformation is also about aligning procurement with the broader goals of the business. Whether that means driving innovation, improving ESG compliance, or reducing supplier risk, the goal is to ensure that procurement contributes meaningfully to the organization’s success. And while transformation often involves significant change, it doesn’t have to happen all at once. As this article will show, small, targeted steps can lead to big results.
The case for tactical transformation
I’ve spent years leading procurement transformations and consulting with organizations on their journeys. Time and again, I’ve seen how small but meaningful shifts can unlock new potential within procurement teams. These are the kinds of changes that build momentum, strengthen trust, and open the door to more ambitious initiatives.
Here are five proven tactics that I've personally seen work while leading procurement transformation:
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Form an executive-level governance group that sets procurement goals and aligns them with company priorities,
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Address process problems with high volume / low impact purchases to increase the perception of procurement,
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Identify a stakeholder advocate to trial an increased role for procurement in a specific project or category,
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Provide training to internal team members to help them reimagine the role and impact that procurement can have,
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Target a small investment in procuretech that either improves access to information (e.g. spend analytics) or improves the stakeholder experience (e,.g. intake management.)
1. Align Procurement Goals with the Executive Agenda
One of the first steps in driving transformation is to make sure procurement has a clear connection to the priorities of the C-suite. If your function feels isolated, operating with goals that don’t resonate at the executive level, you’re going to struggle to gain the traction you need.
This is where an executive-level governance group comes into play. By forming a committee that includes senior leaders from finance, operations, and other key departments, you position procurement as a strategic partner rather than just a cost center. Together, you can align on goals like reducing supplier risk, improving ESG compliance, or supporting innovation—all while tying those objectives to broader business imperatives.
When I’ve introduced sourcing governance groups in past transformations, the results were striking. Meetings became opportunities to share insights, secure buy-in, and ensure that procurement initiatives remained aligned with enterprise priorities. The key is regular communication—quarterly or even monthly check-ins can keep the momentum going.
2. Fix everyday process bottlenecks
Sometimes, the fastest way to elevate procurement’s standing within the organization isn’t through lofty strategies but by solving day-to-day frustrations. These frustrations often stem from high-volume, low-value transactions that clog up your workflows.
Think about approvals for routine office supplies, travel expenses, or simple IT equipment. Are these processes cumbersome or confusing? Do they require multiple sign-offs for small-dollar purchases? If so, these are the very processes that can undermine procurement’s reputation as a helpful partner.
Start by listening. Talk to your stakeholders about what’s slowing them downthen look for ways to streamline. Whether it’s implementing guided buying catalogs, increasing the use of P-cards, or automating low-value approvals, these small changes can make a big difference. Not only do they improve efficiency, but they also signal to your colleagues that procurement is focused on helping, not hindering.
3. Build champions through pilot projects
Procurement transformation doesn’t happen in a vacuum. To gain credibility, you need allies across the organization—people who see firsthand what procurement can do. That’s why piloting an expanded role in a specific project or category can be so powerful.
Here’s how it works: Identify a stakeholder who’s open to collaboration. Maybe the marketing department is planning a major campaign or the IT team is embarking on a software upgrade. Partner closely with them to demonstrate procurement’s ability to add value. Focus on clear, measurable outcomes—whether that means cost savings, supplier performance, or faster contract cycles.
The beauty of this approach is that it creates proof points and win-win situations. Once other teams see the success of your pilot, they’ll be more open to involving procurement in their own initiatives. And as those success stories build, so does your team’s reputation as a trusted partner.
4. Invest in your team’s skills
Procurement transformation isn’t just about changing processes or technology; it’s about changing perceptions. And one of the most effective ways to shift perceptions is by equipping your own team to reimagine their role.
Training plays a critical role here. By providing workshops, hands-on coaching, or even cross-functional project experience, you can help your team see themselves as strategic contributors rather than transactional administrators.
One topical area to invest in training is the use of artificial intelligence (AI). A recent study by AI at Wharton found that enthusiasm about generative AI in procurement was at a record high in 2024, but investment in training was among the lowest of any business function.
And don’t stop with your own team. Stakeholder education matters too. I’ve seen tremendous results when organizations invest in educating their internal customers on how to work effectively with procurement. Whether it’s a quick guide to procurement processes or a training session on spend analysis methods, these efforts go a long way toward fostering better collaboration.
5. Target smart, small investments in technology
When people hear “procurement transformation,” they often think of massive technology rollouts. But you don’t need to overhaul your entire tech stack to start driving change. Sometimes, a small, focused investment in procuretech can have an outsized impact.
Consider tools that improve visibility into spend, like spend analytics platforms, or solutions that simplify the stakeholder experience, like intake management systems. These investments are often manageable in scope and cost, but they can deliver quick wins that build momentum for broader digital transformation.
The key is to start with a specific pain point. Are stakeholders frustrated by unclear approvals? Does your team lack visibility into tail spend? Focus your investment on solving those issues, and make sure to measure and share the results. When your first tech investment pays off, it’ll be easier to justify larger initiatives down the road.
Bottom line on impactful procurement transformation tactics
Transformation doesn’t have to mean starting from scratch. By focusing on these five tactics—aligning with executive priorities, streamlining processes, piloting strategic partnerships, investing in team development, and targeting smart technology—you can quickly shift your procurement team’s trajectory.
Each of these steps is about building momentum. They demonstrate that procurement isn’t just about cost savings but about creating value for the business. And as you build that momentum, you’ll find that the bigger, more strategic changes become not only possible but inevitable and sustainable.
So start small, start smart, and watch as your procurement team becomes a driving force for enterprise success. At Art of Procurement, we’re passionate about helping every procurement executive on their own procurement transformation journey. Join procurement leaders from over 6,000 companies and subscribe to our weekly newsletters.
Related resources and articles
- Small Steps, Big Impact: Transforming Procurement with Aaron Addicoat
- Transforming Procurement at Roche: A Roadmap for the Future featuring Patrick Foelck
- Continuous Improvement as the Cure for Transformation Fatigue with Joël Collin-Demers
- Identifying Ambassadors for Procurement Transformation with Salvador Serra de Paz