The procurement alignment framework construction and application

Abstract

Procurement has become increasingly important for organizations acting in dynamic supply chains and competitive markets. In practice however, companies struggle with adapting and improving their procurement business function. In line with the general trend in management and organization studies, both scholars and practitioners aim to define an integrated procurement policy that is truly aligned on all organizational and IT aspects. The central aim of this paper is to present a framework that supports the definition and application of such an integrative procurement approach. The framework is developed upon insights from IT business alignment (more specifically IT Procurement alignment), procurement maturity measurement and segmentation. It facilitates organizations in monitoring the maturity and alignment of their procurement on five different business/IT perspectives. In addition, the framework enables specific procurement improvements by taking the situational aspect of procurement segmentation into account. The framework was validated twice: through interview expert consulting and through a questionnaire using scale analysis. In a case study it was found suitable for assessing procurement maturity and identifying concrete procurement improvements.