Agility: Procurement's way forward to add value in an era of disruption

The world has experienced a myriad of disruptive events recently, such as high levels of inflation, steep price fluctuations, the COVID-19 pandemic, geopolitical conflicts, and increasing interest rates. These events, coupled with rapidly changing technological advancements and increased attention for environmental, social, and governance (ESG) matters, as well as the difficulties of attracting and retaining skilled talent, pose significant challenges for procurement functions.

Agile procurement proposes a way forward to address these challenges. It is defined as a method that emphasises flexibility, focuses on business outcomes, enables fast decision-making, and saves time by following agile ways of working and principles. It is enabled by four key building blocks: procurement strategy, organisation structure, people, and digital tools.

Key Building blocks for Agile procurement:

Organisations who implement Agile procurement are integrated with the business, continuously aligning their strategy with business priorities. They adopt flexible resource models, utilise cross-functional teams, and collaborate closely with HR to develop hiring and training strategies. Agile ways of working, supported by digital procurement tools, enable these organisations to enhance visibility, respond rapidly to market events, address complex problems, and ensure compliance.

In a rapidly changing world, procurement needs to become more Agile to develop solutions to challenges that traditional organisations may struggle with. Agile procurement also brings benefits such as increased attractiveness to internal business partners and potential external candidates, as well as cost efficiency through effective resource allocation.