Procurement is evolving rapidly, and traditional approaches no longer meet today’s business demands. Companies must adopt a holistic Procurement Strategy that aligns with organizational goals and drives continuous improvement. This core belief at Sourcing Champions was reinforced at our recent Workshop with Dr. Gerhard Heß, where our procurement passionate team explored strategic frameworks to enhance effectiveness, efficiency, and sustainability.

The 15M Approach: A Roadmap to Procurement Excellence

The 15M approach, developed by Dr. Heß, offers a tailored strategy for procurement, allowing organizations to adapt based on their unique market position and business priorities. One of its key pillars, SP4: Process & Digital Strategies, focuses on streamlining procurement processes through digitalization, ensuring greater value contribution. This pillar is structured into two essential modules:

• M12: Describe and Analyze Processes
  • Document and assess procurement processes
  • Identify inefficiencies and areas for improvement
  • Develop targeted optimization strategies
• M13: Formulate Process/Digital Targets and Strategies
  • Set process objectives based on procurement value drivers
  • Leverage digitalization for enhanced efficiency and effectiveness
  • Define and implement strategic initiatives

Digitalization in Procurement: A Structured Approach

Procurement digitalization is not a one-size-fits-all transformation. Companies need a structured Plan-to-Strategy (P2S), Source-to-Contract (S2C), Purchase-to-Pay (P2P), and Supplier Management (SRM) framework to optimize procurement processes. Our extensive client experience has refined the 15M assessment by incorporating digitalization-focused questions, such as AI maturity and automation potential, ensuring a more comprehensive evaluation. Additionally, we leverage Ivalua to drive digital procurement excellence, helping organizations integrate advanced procurement technologies into their operations:

• P2S: Spend analytics, category strategy development, sustainability tracking
• S2C: RFX execution, contract lifecycle management, sustainability-driven decision-making
• P2P: Supplier performance checks, order creation, sustainability compliance
• SRM & ESG: Supplier onboarding, risk management, regulatory compliance (CSRD, CSDDD)

Integrating Risk Management into Procurement

Effective procurement relies on a robust risk management framework seamlessly integrated into decision-making. During our deep-dive session with Dr. Gerhard Heß, we explored his innovative approach to risk management and its connection to the 15M house. The session provided invaluable insights into structuring procurement risk frameworks to enhance resilience and strategic decision-making. These learnings will be featured in his upcoming works, and we are eager to apply them. Always advancing procurement innovation!

Key Risk Management Principles:

• Procurement must establish clear responsibilities across the supply chain.

• Systematic documentation of procurement rules and methodologies is essential.

• Risk assessments should be embedded in supplier selection and category management.

The Role of a Purchasing Management System (PMS)

A Purchasing Management System (PMS) acts as the backbone of structured procurement, defining roles, processes, and compliance requirements. It ensures procurement operates with efficiency, governance, and sustainability at its core. By standardizing procurement workflows and performance measurement, PMS serves as a foundation for strategy creation, ultimately shaping the procurement organization and aligning decision-making frameworks.

Sustainability & ESG: Embedding Responsible Procurement

Sustainability is now a core driver of procurement success. Companies must integrate sustainability into every procurement phase:

• P2S: Ensuring transparency in Scope 3 emissions and aligning sustainability policies

• S2C: Embedding sustainability criteria in RFX processes and supplier negotiations

• P2P: Monitoring supplier sustainability performance and ensuring procurement decisions support ESG goals

Conclusion: Procurement as a Strategic Enabler

The Sourcing Champions Strategy Workshop with Dr. Gerhard Heß reinforced that procurement is not just a support function—it is a strategic enabler driving efficiency, innovation, and sustainability. By adopting a structured, digitalized, and risk-aware approach, procurement leaders can maximize value contribution while ensuring long-term resilience. The future of procurement is data-driven, strategically aligned, and impact-focused—those who embrace this shift will lead the way in building sustainable and competitive supply chains.