Imagine a procurement function that drives the organisation forward—unlocking value, creating resilience, and enabling innovation. That’s the promise of a mature procurement function, one that’s aligned with your organisation’s strategic goals and primed to respond to a rapidly changing world. But to get there, you need to understand where you stand and where you could go.
That’s where a Procurement Maturity Model comes in.
Knowing your procurement maturity level isn’t just a box to check—it’s a lens through which you see the full potential of your procurement function and the role it could play in shaping the future of your organisation. You’re setting a foundation for impact that resonates across the business. You’re enabling procurement to make a tangible difference in everything from risk management and cost savings to supplier partnerships and sustainable innovation.
Here’s what you need to know:
What and Why of a Procurement Maturity Model
What is a Procurement Maturity Model?
Definition and Purpose
A Procurement Maturity Model is a structured framework that assesses an organisation’s ability to optimise its procurement function. It evaluates current procurement practices, technological capabilities, and strategic alignment, enabling organisations to identify their maturity level. The model categorises procurement functions into progressive stages, helping companies understand their current state and set goals for improvement.
Comprara’s Procurement Model
Comprara’s Procurement Maturity Model offers a comprehensive, multi-dimensional approach to assessing and advancing procurement maturity. It evaluates 16 key dimensions across four core areas: Delivery, Organisation, Influencers, and Framework. Comprara’s model includes five stages of maturity—Basic, Growing, Progressive, Established, and Best in Class—each tailored with specific technological, process, and strategic capabilities. Additionally, Comprara’s model integrates AI readiness, guiding companies to leverage digital tools and predictive analytics as they advance. This structured approach not only benchmarks organisations against industry standards but also provides a customised roadmap for continuous improvement and strategic growth.
Why is a Procurement Maturity Model important?
It helps organisations set realistic goals to achieve higher maturity levels, manage spend strategically, and improve the bottom line. With Comprara’s model, businesses gain a roadmap for continuous improvement, helping them justify budget needs and resource allocations to move toward “Best in Class” procurement.
Importance of Procurement Maturity
Achieving higher procurement maturity is essential for organisations looking to manage spend strategically, streamline processes, and drive value across the business. A mature procurement function can significantly impact the bottom line, improve risk management, and foster innovation through partnerships with suppliers. By moving through the stages of maturity, organisations build resilience against supply chain disruptions, optimise resources, and better align procurement with overall business objectives.
What are the main goals of a Procurement Maturity Model?
The primary goals are to optimise procurement processes, manage spend, foster strategic alignment with business goals, and drive innovation. Comprara’s framework emphasises the importance of tailoring the model to address specific business pain points and strategic objectives.
Implementation and Assessment
How do I conduct a Procurement Maturity Assessment?
A maturity assessment involves evaluating current procurement processes, identifying gaps, and developing an improvement plan using surveys, interviews, and data analysis. Comprara’s three-step assessment process includes: Identifying Initiatives, Prioritising Initiatives, and creating a Roadmap for Change, ensuring actionable and prioritised recommendations.
Why is it important to assess procurement maturity?
Regular assessments identify improvement areas, help organisations save money, increase efficiency, and better meet business needs. Comprara’s assessment specifically benchmarks an organisation against industry standards, pinpointing opportunities to enhance procurement’s strategic impact.
How often should a Procurement Maturity Assessment be conducted?
Ideally, assessments should be conducted every 3 years or when significant changes occur within the business. Comprara recommends this frequency to maintain continuous alignment with evolving business goals and market conditions.
Benefits and Outcomes
What are the benefits of using a Procurement Maturity Model?
A mature procurement function delivers improved efficiency, cost savings, enhanced risk management, and better alignment with business goals. Comprara’s model highlights these benefits and provides a structured approach to unlocking the full potential of procurement.
How can a Procurement Maturity Model help in managing spend?
It provides a framework for strategically managing spend, optimising the buying power of goods and services, and identifying high-impact savings opportunities through prioritised initiatives.
Can a Procurement Maturity Model help in future-proofing the business?
Yes, it builds resilience by enabling organisations to manage ongoing supply risks and business continuity issues. The Comprara model includes risk assessment as a key dimension, ensuring that businesses are prepared for disruptions.
How does a mature procurement function impact business innovation?
A mature function fosters partnerships with suppliers to drive innovation and improve agility. Comprara’s model incorporates AI readiness as procurement matures, allowing businesses to leverage data and analytics for innovative strategies.
How many stages are there in the Procurement Maturity Model?
Comprara’s model comprises five stages: Basic, Growing, Progressive, Established, and Best in Class. Each stage represents a different level of maturity, with specific capabilities and technologies suited for each level, including AI readiness as procurement progresses.
Procurement People, Processes, and Technology
What role do people play in the Procurement Maturity Model?
Procurement professionals and leaders are crucial for maximising value. Comprara’s assessment emphasises the importance of building a skilled, strategically aligned procurement team to drive change and improve outcomes.
How important are processes in the Procurement Maturity Model?
Well-defined processes and SLAs are essential for managing stakeholder needs and sourcing events effectively. Comprara assesses process gaps and provides improvement recommendations based on the client-driven agenda.
What technology is required at different stages of the Procurement Maturity Model?
Technology requirements range from basic ERP systems to advanced Business Spend Management (BSM) platforms and AI-driven analytics. Comprara’s model integrates AI as organisations progress, guiding them toward predictive and prescriptive analytics.
How does technology impact procurement maturity?
Technology scales sourcing capabilities, manages multiple events, and streamlines P2P processes. The Comprara framework includes specific guidance on AI and digital tools at each maturity stage, ensuring that technology investments align with maturity growth.
Strategic Alignment
Why is strategic alignment important in the Procurement Maturity Model?
Strategic alignment ensures that procurement decisions support the company’s vision and growth targets. Comprara’s model provides a benchmarking analysis that helps procurement align with business KPIs like market expansion and revenue growth.
How does a mature procurement function align with business goals?
A mature function operates in sync with the company’s strategic plan, contributing to KPIs such as profitability and market share expansion. Comprara’s assessment evaluates this alignment and offers a roadmap to bridge any gaps.
What is the impact of procurement maturity on financial targets?
A mature procurement function can significantly improve profitability by reducing costs and supporting revenue-generating activities. Comprara’s model provides a clear business case for budget requests by linking procurement initiatives to financial targets.
Challenges and Risks
What are the risks of not using a Procurement Maturity Model?
Without a maturity model, organisations face inefficiencies, higher costs, and an inability to adapt to market changes. Comprara’s model specifically highlights risk management and provides tools for mitigating these issues.
How can procurement maturity assessments mitigate risks?
Assessments identify process gaps, improve compliance, and enhance efficiency. Comprara’s assessment also includes AI readiness, which can help organisations proactively manage risks through data-driven insights.
What are the consequences of moving to full-scale digital transformation without being ready?
Premature digital transformation can strain budgets and create operational disruptions. Comprara’s roadmap for change includes readiness assessments that guide organisations through the digital transformation journey progressively.
Best Practices
What are the best practices for advancing through the procurement maturity stages?
Systematic improvements, transformative shifts in practices, and adopting advanced technology are essential. Comprara’s roadmap provides a prioritised action plan that aligns with these best practices.
How can organisations ensure continuous improvement in procurement maturity?
Through regular assessments, investment in capability development, and fostering a culture of improvement. Comprara’s assessment encourages continuous growth by benchmarking and prioritising high-impact initiatives.
What role does leadership play in advancing procurement maturity?
Strong leadership is crucial for driving strategic changes and supporting procurement professionals. Comprara’s model emphasises the role of leadership in achieving higher maturity and ensuring alignment with business goals.
Case Studies and Examples
Can you provide examples of organisations that have successfully implemented a Procurement Maturity Model?
While specific examples are confidential, Comprara’s maturity model principles have been successfully applied across various industries, helping organisations achieve measurable improvements in efficiency and alignment with business goals.
How have companies benefited from using a Procurement Maturity Model in real-world scenarios?
Organisations using maturity models have seen enhanced efficiency, cost savings, and better strategic alignment. Comprara’s approach adds a structured, benchmarked view that sets a clear path for measurable improvement.
How does the Procurement Maturity Model align with industry standards?
Comprara’s model aligns with industry standards and regulatory requirements, covering dimensions like compliance, risk management, and ESG, which are increasingly important in modern procurement.
