Developing Procurement – How to Get Started and Integrate Procurement into Everyday Operations?

Procurement development is not a one-off project – it’s a journey. It’s about building capability: the ability to impact profitability, competitiveness, and growth. But it’s also about making procurement a natural part of everyday business.

In this blog, I present a four-stage model supported by practical cases that show how procurement capability can be developed step by step. The insights are drawn from my own experience as a procurement leader – the successes, the learning years, and the lessons about what truly works.

Step 1. Why is Procurement Important?

Example: Procurement improves profitability, boosts competitiveness, and supports growth.

Case: Clarifying the Role of Procurement

The management team wanted to better understand how procurement could support the business. We reviewed the current state, discussed business value, and outlined a target state. During the workshop, a key insight emerged: procurement isn’t just a cost – it’s a key lever to increase business value. The outcome was a concrete development plan, embedded into the company’s growth strategy.

Tip: Start with a conversation. Ask: “What would happen to our business if procurement was clearly in better shape?”Show how procurement connects to the bigger picture.

Step 2. What Can Procurement Development Achieve?

Example: Procurement development delivers savings, efficiency, and sustainability.

Case: Designing the Procurement Development Project

We structured the development project in three stages. First, we created a work plan and selected tools. Second, we analyzed the current state and identified key development areas. Third, we designed the full program – including goals, resources, timeline, and operating model. The result wasn’t just a plan – it was a practical path forward.

Tip: Keep it practical. Tools and models help, but progress must be based on what matters most to the business.

Step 3. How Does Procurement Development Succeed?

Example: Successful development is based on clear strategy and data.

Case: Creating and Updating the Procurement Strategy

Strategy work starts – and continuously returns to – the company’s business objectives. Building a new strategy is a deep process involving analysis, stakeholder engagement, and a practical action plan. Updating an existing strategy can be lighter, but it still requires focus: what needs to change to meet today’s needs?

Tip: A good procurement strategy is not a PowerPoint deck – it’s a shared vision. Link it to decisions and daily management, or it risks becoming disconnected.

Step 4. What Skills Are Needed for Procurement Development?

Example: Procurement development requires subject matter expertise, business understanding, and change capability.

Case: Focusing on Procurement Skills Development

The company wanted to strengthen the capabilities of its procurement teams. We created a program where participants applied learning directly to their daily work. Topics included procurement’s financial impact, contracts, negotiations, and stakeholder collaboration. The result: stronger capability, deeper relationships, and a step forward toward long-term development.

Tip: Skills development isn’t about a one-off training day – it’s about bringing learning into everyday work. Help people succeed in their roles.

What Does Procurement Capability Mean – and Why Is It Important?

Procurement capability means the organization’s ability to manage, lead, and develop procurement in a way that delivers real business value. It is built on expertise, operating models, collaboration, data-driven management, and alignment with business goals.

When procurement capability is strong:

• Procurement is proactive, not reactive

• Purchasing supports strategy and targets

• Supplier collaboration creates added value

• Data guides decision-making

• Skills are visible in everyday choices

Why invest in procurement capability?

Because without it, procurement often remains isolated or under-optimized. Strong capability turns procurement into a strategic tool – a way to improve profitability, respond to change, and build a competitive edge.

Summary: 5 Practical Tips for Developing Procurement Capability

1. Clarify the role of procurement

Start the conversation at the leadership level. Show how procurement affects results, risks, and growth.

2. Create a plan – but keep it practical

Use workshops, ready-made tools, and phased progress. Avoid overambitious projects – build a series of small wins instead.

3. Base development on data and strategy

Don’t rely on intuition alone. Use analysis to understand your current state and build a strategy that truly guides action.

4. Invest in skills – and bring them into daily work

Focus on learning that supports execution. Build programs that strengthen both performance and capability.

5. Anchor procurement in everyday decisions

Strategy, development, and capability shouldn’t be isolated. They must connect to budgets, processes, and leadership.

Contact Lauri and Start Your Development Journey

Development begins with the first step – get in touch, and let’s take that step together.

I understand procurement operations, strategy, and people – and I speak the language of both leadership and daily work.

I bring clarity, build trust, and help deliver real results.

Every collaboration begins with listening – so reach out and let’s see what we can achieve together.

Final Thought:

Procurement development is not a sprint – it’s a long-term journey. But it’s one worth taking.

Not because everything is ready – but because every step brings you closer to meaningful change.

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