Approximately 60-90% of all sales are in the hands of procurement, which is a key success factor for companies. At the moment, digitization is taking place, especially in the area of imple procurement. However, the latest study by the University of St. Gallen shows that there is no recipe for the effective procurement of complex products and services. Does agility offer a solution? - It is about billions and thus nothing less than the survival of suppliers and customers!
If we agile coaches draw an ideal organization, it usually looks like a network organization consisting of agile, autonomous cells. Up to now, our focus in agile transformation has been on the customer and to the internal organization. In the future, agility will cover the entire value stream and thus also the agility of our partners.
As external partners are often closely integrated into the agile organization they became an essential component of the value stream. However, many are still being treated as suppliers with a focus on a price as low as possible, instead of partners on equal terms with additional innovation power. In an ever more rapidly changing, more complex world, it becomes an integral success factor for a company to have quick access to an ecosystem of adaptive partners. Therefor we have to adapt our sales and procurement as well.
Please find below the most important key take-aways of the speech:
- the market is changing dramatically. Small vendors could stop production lines of big companies such as VW (27'000 Employees where blocked) and procurement was unable to react in time.
- new developments like e.g. 3D-Printing offer new possibilities to solve complex problems in development and production with fast delivery (Lead times of DAYS to WEEKS), so that it makes no sense to spend months for procurement any more
- for reaching true business agility companies need to create there own adaptive partner ecosystem. This will become a much bigger multiplier for business as today.
- the lean procurement canvas and lean-agile procurement have the potential for a disruption as the business model canvas and lean startup had for business development
- the lean procurement canvas is simple. Find an example in the slides
- The lean procurement canvas is the most LEAN agile contract right after a verbal contract
- there are success stories out there that sourced a new partner in 4 days instead of months, while the people that would work together evaluated each other in an agile approach.