Entrepreneurial Procurement: Why we need a business owner mindset

17-07-2024 • 18 mins

This week on The Procurement Software Podcast, host James Meads dives into the world of entrepreneurial procurement. Tune in to discover how this approach encourages innovation, efficiency, and greater value delivery, transforming the procurement function into a strategic driver within organisations.

Entrepreneurial Procurement: Pragmatism over Rigid Process

In this episode, we explore adopting an entrepreneurial mindset in procurement, focusing on prioritising results over rigid processes. By thinking like a business owner, procurement professionals can deliver greater value to their organisations. Traditionally, procurement has emphasised set procedures, often at the expense of efficiency and agility. An entrepreneurial approach encourages breaking free from these constraints, driving innovation, expediting decisions, and adapting quickly. James highlights how re-allocating budgets from FTE salaries to technology can enable teams to invest in tools that automate tasks and enhance efficiency. With this approach, it can be done even if you don't have a specific software budget authorised by the CFO. This shift can lead to significant cost savings and more efficient resource utilisation. Another key concept is the minimum viable product (MVP) approach, inspired by tech startups. By identifying the bare essential processes needed for compliance, procurement teams can streamline operations, reduce bureaucracy, and foster creativity and agility. Overall, this entrepreneurial mindset can drive innovation, deliver value, and contribute to organisational success.

Timestamps:

[00:02:26] - The Challenge of Entrepreneurial Procurement [00:03:10] - Technocratic vs. Entrepreneurial Mindset [00:04:47] - Thinking Like a Business Owner [00:05:30] - Budgeting with an Entrepreneurial Mindset [00:07:05] - Flexible Staffing Strategies [00:08:43] - Investing in Technology Over Headcount [00:09:57] - Retaining Star Performers [00:11:09] - Minimum Viable Product (MVP) [00:15:04] - Business Partnering Mindset [00:16:10] - Importance of Data in Procurement And that wraps up another episode of The Procurement Software Podcast! Thanks again for listening, and do please leave us a review on Apple Podcasts or rate us on Spotify. Every one helps! We'll be back at the same time next week, so see you there. If you want to learn more about Procurement Software, check out the useful links below.