Agile Metodes and Digitalization in Purchasing

The absolute majority of respondents agree that the advancing digitalization and the increased use of agile methods in companies will bring fundamental changes to procurement.

At the same time, however, over 80 percent consider their own purchasing department to be inadequately positioned in this context and just 6 percent are constructively dealing with the effects.

This was the conclusion of the recent short study "Agile Procurement", which surveyed more than 150 procurement experts on the set-up of the team in relation to agile methods.

For study director Prof. Ayelt Komus, Professor at Koblenz University of Applied Sciences, the study results are a wake-up call for the purchasing of the future:

"Especially for the purchasing departments that want to play a positive role in shaping the future of companies as 'purchasing at eye level'. We know that purchasing experts agree that far-reaching changes are coming as a result of digitalization and agile methods.

At the same time, we have to state that the purchasing departments consider themselves to be poorly positioned"

Komus continues.

Fundamental changes

Agile methods are becoming increasingly important in companies. Scrum, IT Kanban and design thinking are playing an increasingly important role, and not just in IT development.

Against the backdrop of the challenges and opportunities presented by digitalization, globalization and Industry 4.0, this trend will continue to intensify.

At the same time, various principles such as rolling planning ("sprint planning"), delivery of increments ("potentially deliverable products") and self-organized teams lead to new constellations that cannot easily be optimally taken into account with the traditional approaches of purchasing ("fixed price problem", contract for work and services).

This has now also caught on among purchasing experts and three quarters see fundamental changes coming to the tasks and success factors of purchasing.

According to the majority opinion, these changes are similar to the opportunities and challenges of digitalization and Industry 4.0.

After decades of well-established work in awarding tenders and drawing up contracts with detailed specifications and requirements, the increased dynamism on increasingly international markets now requires a flexible procurement process. This development usually catches those affected unprepared, with over 80 percent describing the team as poorly positioned.

Half of those surveyed stated that the majority of colleagues in procurement have not yet recognized agile methods as a change factor, while almost 30 percent stated that the majority of colleagues are only just beginning to cautiously support the upcoming change.

Although a clear need for action in the further development of purchasing has been recognized, only six percent of those responsible are currently actively and constructively dealing with the effects.

Organizational Change Management

The participants expect significant and in some cases even very far-reaching changes in almost all purchasing tasks. The respondents see the greatest challenge in the acceptance of the change by employees in procurement, who will have to adapt their working methods to agile methods in the future.

Just under half of the respondents who could be analyzed also see a major challenge in gaining acceptance from company management. According to the participants, the change primarily entails far-reaching changes in coordination with the specialist departments.

The greatest change is expected in areas related to software and product development.

1. Recommendations of the study team
2. Teach the basics of agile methods, digital transformation and Industry 4.0 where applicable!
3. Get a clear picture of the specific situation in your company!
4. Ensure that differentiation is practiced appropriately in purchasing processes and strategies!
5. Work closely together - especially with the specialist department and legal department!
6. Develop suitable skills and contract architectures!
7. Make your processes fit for agile purchasing!
8. Reflect on the personality profiles, skills and inclinations of your employees!
9. Use agile methods in your processes too!
10. Start today.