Published: 02 July 2017
Analyst(s): Procurement Research Team
Procurement structural design seeks to ensure appropriate deployment of procurement staff across a range of organizational priorities. There is no perfect organizational structure, as trade-offs and tension will always exist among the key components of function design. The objective of this advice is to help you pick a best-fit procurement organization structure. This advice addresses how to balance four primary considerations when designing a procurement function structure: spend categories, business units (customers), procurement activities and geographies.
Framing Organization Structure (Re)Design
Overview: General Guidance for Procurement Organizational Design
Overview: Assessing the Fit of a Category-Based Structural Orientation
Fixed Constraints for Selecting a Category Focus
Determining If Categories Should Be the Primary Organizing Principle for the Function
Overview: Assessing the Fit of a Business Unit-Based Structural Orientation
Fixed Constraints for Selecting a Business Unit Focus
Determining If Business Units Should Be the Primary Organizing Principle for the Function
Overview: Assessing the Fit of an Activity-Based Structural Orientation
Fixed Constraints for Selecting an Activity Focus
Determining If Procurement Activities Should Be the Primary Organizing Principle for the Function
Overview: Assessing the Fit of a Geography-Based Structural Orientation
Fixed Constraints for Selecting a Geographic Focus
Determining If Geography Should Be the Primary Organizing Principle for the Function
Managing Trade-Offs That Result from Organizational Design Decisions
Key Trade-Off: Make It Most People’s Job or a Few People’s Job
Helping Teams Work Across Silos
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