Skip to main content
Category

Procurement Health Check

Apr 17

People, Process, Tech: Why Procurement Only Works When All Three Are Aligned

By Procurement Health Check No Comments

Procurement teams are often told to “optimize the tech,” “streamline the process,” or “upskill the people.” But rarely are these three pillars treated as the interconnected system they really are. 

Without alignment across people, process, and technology, even best-in-class tools and well-documented policies will fall short. And it’s often misalignment – not a lack of effort or budget – that quietly stalls progress. 

Let’s unpack why all three must move in sync – and what happens when they don’t. 

 

The Tech Is Great – But Nobody’s Using It

You rolled out a powerful platform. But usage is low. Workarounds are common. Training was “one and done.” 

Misalignment looks like: 

  • Buyers defaulting to email or Excel 
  • Leaders not trusting the dashboards 
  • Suppliers struggling to onboard 

The fix isn’t just better change management – it’s making sure the system reflects how people actually work. It’s matching workflows to reality, simplifying friction points, and investing in sustained enablement. 

 

The Process Is Documented – But Nobody Follows It

Your procurement playbook is solid. Approval thresholds, supplier onboarding rules, sourcing steps – they’re all defined. 

But: 

  • Approvals are bypassed 
  • Stakeholders go off-contract 
  • Suppliers aren’t vetted consistently 

That’s often a people issue – or a signal that the process doesn’t match how work really happens. Alignment means having governance that’s both followed and flexible, with policies that earn buy-in. 

 

The People Are Engaged – But the Tools Don’t Help Them Win

Sometimes, you’ve got a capable team, eager to drive results – but saddled with outdated tech or disconnected systems. 

The result? 

  • Slow cycle times 
  • Limited visibility 
  • Frustration that leads to burnout 

Even top talent can’t deliver if the tools are holding them back. Process innovation and technology upgrades are how you let people do their best work. 

 

Alignment in Action: What It Looks Like 

A well-aligned procurement function has: 

  • Systems configured to support how work really gets done 
  • Processes enforced and refined with user feedback 
  • People enabled through training, data, and autonomy 

It’s not just about buying software or enforcing rules. It’s about creating a loop – where each pillar supports and strengthens the others. 

 

The Takeaway 

If your procurement results aren’t matching your investment, the question isn’t “what’s broken?” 

It’s what’s out of sync?

A Procurement Health Check isn’t about fixing one piece of the puzzle – it’s about stepping back to see how people, process, and technology are (or aren’t) working together. 

Apr 17

Is Procurement Actually Broken – Or Just Misaligned?

By Procurement Health Check No Comments

When procurement isn’t performing, the usual suspects are blamed: clunky tools, underperforming suppliers, or “lack of spend under management.” But the real issue may not be broken technology—it might be misalignment. 

Misalignment between vision and execution. Between procurement and finance. Between buyers and users. Between what the platform can do and how it’s used. 

In reality, many organizations don’t need to replace what they have – they need to recalibrate it. 

Symptoms of Misalignment (That Look Like Bigger Problems) 

  • Teams using workarounds instead of the actual system 
  • Low supplier adoption despite enablement efforts 
  • Approvers constantly rubber-stamping purchases 
  • Maverick spends continuing despite policies 
  • Contracts that never make it into the system 

Each of these may look like a tech failure – but they’re often process or behavior failures that go unaddressed. 

 

Why This Matters More in the Mid-Market and Lower Enterprise Space 

In large enterprises, layers of oversight and deep pockets can cushion inefficiencies. In the mid-market? Not so much. You’re working with lean teams, fewer specialists, and systems that must run clean. 

That makes misalignment more dangerous – and makes course correction even more urgent. 

Before You Rip and Replace – Assess 

A Procurement Health Check is a structured way to uncover: 

  • Which platform features are underutilized (and why) 
  • Where are process bottlenecks hiding 
  • How people are using (or avoiding) the system 
  • Which metrics are being tracked, and which are being ignored 

The goal isn’t to point fingers. It’s to create a shared, data-driven understanding of how procurement really works day-to-day, and how to get it working better. 

 

The Tech Isn’t Broken – The Setup Might Be 

We’ve seen it again and again: companies using SAP Ariba, Coupa, Oracle, or even manual processes, thinking they need a total overhaul. But often, a few targeted changes in process, training, governance, or configuration unlock far more value than a replatforming project ever could. 

 

The Bottom Line 

Procurement isn’t broken. It’s misaligned. And that’s a solvable problem – if you know how to look for it. 

Apr 17

How to Run a Procurement Health Check Without Wasting Everyone’s Time

By Procurement Health Check No Comments

Ask a procurement leader if they’d like better data, faster sourcing cycles, or more compliance – and you’ll hear a resounding yes. 

Ask if they want to do a “health check,” and the enthusiasm tends to dip. 

Why? Because it sounds time-consuming, expensive, and vaguely accusatory. But done right, a procurement health check isn’t a distraction – it’s one of the fastest ways to gain clarity, align teams, and set a practical roadmap for improvement. 

Here’s how to do it without spinning your wheels. 

 

Step 1: Start With the Right Questions 

This isn’t about auditing people. It’s about assessing how well your procurement function supports the broader business strategy. Questions like: 

  • Are our tools configured to match how we actually buy? 
  • Where are we losing time or visibility? 
  • Are buyers and end users following the same playbook? 
  • What KPIs are we actually using to measure success? 

 

Step 2: Focus on Process and Behavior, Not Just Tools 

You can have the best tech stack in the world and still fail to hit your goals if adoption is low or the workflows are full of friction. Look at: 

  • How sourcing events are run in practice 
  • Where contracts live and whether they’re connected to purchasing 
  • How suppliers are onboarded and managed 
  • Whether users know how (or why) to follow the process 

 

Step 3: Use Benchmarking to Ground the Conversation 

Nobody likes being told their process is broken. But everyone wants to know how they stack up. Benchmarking against peers – on metrics like cycle time, spend under management, and contract compliance – gives the conversation structure and objectivity. 

 

Step 4: Don’t Overcomplicate the Output 

The best procurement health checks don’t end with a 90-page report that sits on a shelf. They end with 3–5 prioritized actions based on: 

  • Business impact 
  • Ease of implementation 
  • Readiness across people, process, and tech 

 

What a “Lean” Health Check Looks Like 

  • 2–3 stakeholder interviews to uncover friction
  • System usage analysis for adoption and configuration gaps
  • Benchmarking vs. peers
  • 1 working session to validate findings and prioritize
  • 1 summary playbook to guide the next 90–180 days 

That’s it. Not months of disruption. Not dozens of workshops. 

 

The Bottom Line 

A procurement health check doesn’t need to be long or painful. It just needs to be focused. When it is, it becomes one of the most valuable tools a procurement leader can use to move fast and smart – without burning out the team. 

Apr 17

Stop the Bleed: Fast Wins for Procurement Leaders Feeling the Pressure

By Procurement Health Check No Comments

When margins are tight, procurement feels it first. 

Whether it’s unexpected tariffs, supplier volatility, or internal cost-cutting mandates, procurement leaders are expected to deliver quick wins without disrupting operations or adding headcount. 

The good news? You don’t need a full digital transformation to start making progress. 

Here are five high-impact actions procurement teams can take in the next 90 days to reduce spend, increase control, and improve visibility, regardless of your platform or budget. 

 

Rationalize Your Supplier Base

Start by identifying overlapping or underused suppliers. Consolidation doesn’t just drive volume discounts – it simplifies operations and reduces risk. 

Look for: 

  • Multiple suppliers providing the same SKU or service 
  • One-off suppliers with low or no spend in the last 12 months 
  • Opportunities to move spend to preferred vendors 

 

Reinforce Contract Compliance

You don’t need new contracts – you need to make better use of the ones you already have. 

Quick wins: 

  • Identify top-spend categories with no contract coverage 
  • Auto-route purchases to approved suppliers 
  • Pull reports on contract leakage and start plugging the gaps 

 

Automate the Easy Stuff

Even small pockets of manual work can create drag. 

Examples: 

  • Auto-PO for low-value purchases 
  • Guided buying catalogs for MRO and office supplies 
  • Templatized RFxs for low-complexity sourcing 

If you’re on SAP Ariba or a similar platform, many of these can be activated with configuration, not custom work. 

 

Improve Invoice Match Rates

High mismatch rates mean wasted time, delayed payments, and frustrated suppliers. 

Actions: 

  • Tighten up purchase descriptions 
  • Align invoice formats with system expectations 
  • Review top invoice rejection reasons and retrain teams as needed 

 

Communicate Wins Internally

This one’s often overlooked – but critical. 

Procurement wins don’t always announce themselves. Create a monthly “quick wins” dashboard showing: 

  • Realized vs. potential savings 
  • Supplier consolidation progress 
  • Compliance or cycle time improvements 

Even if the numbers aren’t huge yet, showing movement builds credibility and momentum. 

 

Start Small, Prove Impact, Scale Smart 

These aren’t transformation projects. They’re triage. And when done well, they create space for you, your team, and your organization to think bigger. 

If you’re not sure where to begin, a procurement health check can help identify the low-hanging fruit with the highest impact. 

Apr 17

The Hidden Cost of Adoption Failure: Why Training and Change Management Are Non-Negotiable

By Procurement Health Check No Comments

You can’t outspend your way to a successful procurement transformation. 

Too often, companies invest heavily in powerful platforms – SAP Ariba, Coupa, Oracle, you name it – only to see results fall short of expectations. The culprit? Not the technology itself, but the lack of real adoption. 

Adoption failure doesn’t just stall ROI. It introduces hidden costs that compound quietly over time – manual workarounds, data inconsistencies, contract leakage, and lost time. And in the mid-market especially, where teams are lean and resources limited, these costs can be crippling. 

Let’s break down why training and change management aren’t “nice to have” – they’re the foundation of sustainable value. 

 

If They Don’t Use It, It Doesn’t Matter

No matter how advanced your procurement tool is, if buyers and stakeholders don’t know how (or why) to use it, it’s dead on arrival. 

Common signs: 

  • Low login rates among casual users 
  • Contracts are being signed outside the system 
  • AP teams are chasing down missing POs or invoice data 

These aren’t tech problems – they’re enablement problems. 

 

Change Fatigue is Real

Rolling out new tools and workflows without a clear why leads to resistance. People revert to the old way. Training becomes a checkbox. And adoption stalls. 

The solution? Treat change like a journey: 

  • Start with empathy – what are users solving for? 
  • Tailor training by role and use case 
  • Reinforce behaviors over time, not just once 

 

Training ≠ Enablement

Training tells people what to click. Enablement tells them why it matters. 

True enablement means: 

  • Using live data in training scenarios 
  • Mapping process changes to business impact 
  • Making it easy to succeed – and hard to fail 

 

Non-Adoption Has a Real Cost

Every workaround costs something – time, trust, visibility. When adoption lags: 

  • Spending falls outside of contracts 
  • Duplicate suppliers flood the system 
  • Data is incomplete, skewing analytics and decision-making 

Over time, the cost of non-adoption dwarfs the cost of training. 

 

The Fix: Adoption as a KPI, Not an Afterthought 

Embed adoption into your procurement strategy: 

  • Track logins, transactions, and sourcing events per user 
  • Run quarterly usage audits by role or team 
  • Tie success metrics to behavior, not just completion rates 

If your platform isn’t being used as intended, a Procurement Health Check can diagnose where the adoption gaps live – and what to do about them. 

Apr 17

Before You Buy Anything New: 5 Questions to Ask About Your Current Procurement System

By Procurement Health Check No Comments

New platforms are shiny. Promises of automation, AI, and real-time analytics sound great – especially when your current system feels sluggish or underwhelming. 

But before your team kicks off an RFP or explores switching providers, it’s worth asking a tough-but-honest question: Are we really using what we already have?

Whether you’re on SAP Ariba, Coupa, Oracle, Jaggaer, or a homegrown patchwork, these five questions can help you decide if the problem is the tool or how it’s being used. 

 

Are We Using the Features We’re Paying For?

Most procurement platforms are packed with capabilities – guided buying, supplier scorecards, risk scoring, and contract clause libraries. But many organizations only scratch the surface. 

  • Do you know what modules are licensed vs. actually in use? 
  • Are your teams trained on how to use them well? 
  • Are you seeing measurable outcomes tied to feature usage? 

 

How Well Are Our Tools Aligned to Our Actual Process?

Your process might look beautiful on paper. But in practice, it may be riddled with exceptions, shadow spreadsheets, and off-system purchases. 

  • Is the system configured to match how your teams actually buy and approve? 
  • Are approval workflows helping or hindering? 
  • Are people creating workarounds – and why? 

 

Where Is the User Friction Happening?

It’s not always a change management problem if people resist the system. Sometimes, it’s a design problem. 

  • Are buyers defaulting to manual because the system is confusing? 
  • Is supplier onboarding fast and smooth, or a black hole? 
  • Can stakeholders get what they need without calling procurement? 

Are We Getting the Right Data – and Trusting It?

You can’t optimize what you can’t measure. But if your reports don’t match reality, you’ve got a trust issue. 

  • Are you confident in your spend categorization? 
  • Do dashboards reflect actual activity, or just what’s in the system? 
  • Is finance using procurement’s data for planning? 

 

Have We Taken the Time to Evaluate System Fit?

Sometimes, the tool truly isn’t the right one. That’s okay. But the decision to move on should be based on data, not frustration. 

  • Have you done a formal utilization review? 
  • Have you benchmarked against similar companies? 
  • Have you explored whether reconfiguration or training could solve the core issues? 

 

The Takeaway 

Switching systems is a major undertaking – financially, technically, and organizationally. Before you take that leap, make sure you’ve fully understood what’s working, what’s not, and whether you’re leaving value on the table. 

A Procurement Health Check is often the fastest, least disruptive way to get those answers. 

Apr 16

Procurement Without Borders: How to Stay Resilient Amid Global Tariff Volatility

By Procurement Health Check No Comments

When tariff headlines dominate the news cycle, procurement leaders across industries feel the ripple effects instantly – margin pressure, supplier panic, and a flurry of “what-if” scenarios hitting inboxes.  

For organizations in the mid-market and lower enterprise space, the impact can feel outsized. Less negotiating power, fewer backup suppliers, and tighter budgets mean the room for error is slim. 

But while tariffs are unpredictable, your procurement operation doesn’t have to be. 

Tariffs Don’t Just Hit Imports – They Hit Strategy 

Tariff volatility isn’t just about increased costs on imported goods. It’s about the chain reaction they trigger: 

  • Sudden cost increases with no time to adjust pricing 
  • Disrupted supplier relationships 
  • Cash flow stress from higher inventory or customs payments 
  • Compliance confusion from shifting regulatory requirements 

This isn’t just a supply chain problem – it’s a strategic one. And it demands a cross-functional response. 

Visibility is Your First Line of Defense 

You can’t adapt to what you can’t see. 

When new tariffs are announced, leading procurement teams already have real-time answers to: 

  • What suppliers are in affected regions?
  • Which components or materials are at risk?
  • What contracts are vulnerable to cost escalations or penalties?
  • How will this impact our P&L in the next 90 days? 

Integrated platforms like SAP Ariba and SAP S/4HANA Finance help teams surface these answers fast. But even if you’re on Coupa, Oracle, or using spreadsheets, the principle is the same: build a system of truth for supplier geography, contract clauses, and cost drivers. Otherwise, you’re flying blind. 

Beyond Tools: The Process and People Side 

Resilience isn’t a module you can license – it’s a capability you build. 

That means training buyers to respond to shocks. It means pressure-testing sourcing strategies for agility. It means ensuring finance and procurement are modeling impacts in lockstep. A Procurement Health Check is one way to take stock of how prepared your organization really is – not just your tech, but your people and your processes. 

Resilient Procurement Looks Like This: 

  • Supplier base diversified across regions 
  • Active risk scoring and what-if modeling 
  • Contracts written with cost volatility in mind 
  • Sourcing cycles fast enough to pivot when needed 
  • Finance alignment on exposure and mitigation 

Closing Thought: You Can’t Control the Storm, But You Can Control the Hull 

Tariffs will rise and fall with the tides of geopolitics. Your procurement organization doesn’t need to capsize every time. With the right visibility, alignment, and strategy, volatility becomes something you navigate – not something that defines you. 

If you’re unsure where you stand, a health check might be the right place to start. 

Close Menu

Contact Us


Call us at: (603) 867-3882

info@premikati.com
x