Digitising Procurement Operating Models

Reimagining Procurement for the Digital Age

The future of procurement is not simply about adopting new technology—it’s about revolutionising how procurement operates across the entire organisation. To remain competitive in today’s fast-paced, data-driven world, businesses must move beyond traditional procurement methods and embrace a digitally enabled operating model that drives agility, efficiency, and performance. A critical shift in thinking is required: it’s no longer about asking, "Do we design our processes and find a tool to deliver them?" or "Do we select a tool and then adapt our organisation to fit it?" Today, the focus is on designing the organisation first—identifying how it needs to operate to deliver business objectives and outcomes—and then determining the strategy, pausing to consider the technology which can best serve the needs of the key processes, followed by selecting the right tools that will enable the most effective delivery. The final step is ensuring that the organisation is fully equipped to integrate and leverage the selected technology, optimising its structure and processes to effectively handle and support the digital transformation.

This forward-thinking approach ensures that technology supports a cohesive, tailored operating model, rather than dictating how procurement should work. By integrating the best technologies, empowering teams, and creating an ecosystem that is smarter, faster, and more responsive, organisations can unlock significant strategic value.

Jon Hughes

Director, UK Sustainable Supply Chain Lead

KPMG in the UK

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A New Era for Procurement: Beyond Traditional Frameworks

Procurement is evolving. No longer confined to just Source-to-Pay (S2P) platforms, today’s procurement leaders are building integrated, digitised operating models that align with broader business objectives. The future of procurement isn't about solely optimising individual processes—it’s about creating a seamless digital ecosystem that connects every facet of the procurement lifecycle, from sourcing and contracting to supplier management and strategic decision-making.

By digitising procurement, organisations are unlocking a new wave of strategic value—enabling procurement to drive business outcomes, achieve greater supplier performance, and navigate complex challenges with agility and precision.

Four Pillars of the Future Procurement Operating Model

In the quest for transformation, Chief Procurement Officers (CPOs) are focusing on four strategic imperatives that are reshaping the future of procurement: cost efficiency, sustainability, supplier performance management and risk management. To truly digitise procurement, organisations need to move beyond mere automation and embrace the full potential of these priorities through intelligent, data-driven solutions.

Cost Efficiency: The ability to automate processes, predict market trends, and optimise supplier relationships will unlock significant cost savings. But it’s not just about cutting costs—it’s about making smarter investments in technologies that drive long-term efficiency.
Sustainability: Procurement is a powerful lever in achieving sustainability goals. By integrating digital tools to assess environmental impact, trace supply chains, and collaborate with sustainable suppliers, organisations can embed sustainability into their procurement processes and drive impactful change.
Supplier performance management: Digital procurement opens the door to new avenues for innovation and increased transparency of performance. Whether through AI, blockchain, or machine learning, procurement teams can leverage cutting-edge technologies to create new value propositions, discover untapped suppliers, and deliver creative solutions to business challenges.
Risk Management: In an increasingly volatile and uncertain world, digital tools can provide real-time insights into supply chain risks, ensuring proactive responses to potential disruptions and enabling smarter, data-informed decisions that mitigate risk.

A Holistic Approach to Procurement Transformation

Digitising your procurement operating model means more than just integrating new technologies—it requires rethinking your entire approach to procurement. A successful transformation is built on three key pillars: people, process, and data.

People: The future of procurement depends on empowering teams with the skills, tools, and mindsets to drive digital transformation. This isn't just about technology adoption—it’s about cultivating a culture of continuous learning and adaptability, where procurement professionals become strategic enablers who can leverage data and insights to drive business decisions.
Process: Procurement workflows must be re-engineered for the digital age—agile, collaborative, and data-driven. By removing silos and automating routine tasks, procurement teams can focus on strategic activities that deliver real value, all while ensuring that the business stays nimble and responsive.
Data: Data is the backbone of any digital procurement transformation. From cleaner, more consistent data to advanced analytics and data lakes, the right infrastructure enables procurement teams to make smarter decisions, identify new opportunities, and optimise the supply chain in real time.

Best-of-breed apps

Augmenting the core platform with best-of-breed applications to handle specific activity areas and provide people with the best tools to complete their role.

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Core system and data backbone

A core S2P platform streamlines transactional processes freeing time for people to focus on value adding, commercial activities.

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Processes

Core processes are created to ensure efficient working and to enable the efficient leveraging of skills and technology.

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People

People are at the heart of the procurement organisation. They must be the commercial partners which the business can rely on to drive value and deliver competitively.

The Digital Procurement Ecosystem: Ready for the Future

The future of procurement is about creating an interconnected, future-ready ecosystem—one that is designed for continuous improvement and agility. By embracing best-of-breed solutions, organisations can build a flexible and scalable platform that seamlessly integrates with existing systems, ensuring that procurement is always operating at peak efficiency. The key is to create a connected ecosystem where every application, every tool, and every team is aligned toward a common goal: to drive sustainable growth and deliver unparalleled value.

Leveraging Digital Solutions for Strategic Impact

To succeed in this transformation, organisations need more than just technology—they need strategic partners who can help them navigate the complexities of digital procurement. We work with CPOs and procurement teams to implement leading-edge solutions that go beyond traditional tools, integrating emerging technologies like artificial intelligence, blockchain, and machine learning to tackle the challenges of tomorrow.

Whether it’s improving supplier collaboration, enhancing transparency, or enabling predictive analytics, our solutions empower procurement teams to make data-backed, strategic decisions drive supplier performance and deliver measurable results. We help clients harness the power of digital transformation to not only meet current challenges but also anticipate and shape the future of procurement.

Why Digitise Your Procurement Operating Model?

Adopting a digitally enabled procurement approach offers a wide range of benefits, including enhanced cost efficiency, where businesses can automate processes and optimise supplier relationships to drive significant savings. It supports sustainability by enabling better traceability, collaboration with sustainable suppliers, and data-driven decision-making to reduce environmental impact. The approach also strengthens supplier relationship management, allowing for better monitoring and optimisation of supplier performance, fostering stronger, more collaborative partnerships. By integrating real-time data and analytics, procurement teams can proactively identify and manage risks across the supply chain, ensuring greater resilience and the ability to respond swiftly to disruptions. Ultimately, this approach enables more efficient cost control, mitigates supplier risk, and aligns procurement practices with broader strategic business objectives.