Procurement Transformation Journey Created by a Brazilian Bank in a Unique Way

EasyChair Preprint 9767

Abstract

The banking industry is under a complex transformation considering the increased number of competitors, new environment within open banking, new customer behavior and the technological evolution. Those aspects have amplified the volume, complexity and diversity of the demands from business areas, complicating the Procurement life function. Furthermore, new purchasing categories have been appearing consistently considering new technologies, disruptive business models and new suppliers’ offerings which make procurement be better prepared to face those circumstances. In that perspective the Procurement area from a traditional bank in Brazil has challenged itself to investigate important companies worldwide to understand how they have modernized the procurement function and how they addressed the digital transformation journey to transform procurement to a business value added generator.

In 2018, procurement professionals from a Brazilian bank visited 4 companies in Germany from diverse industries (1: Pharma; 2: Technology; 3: Insurance; 4: Telecom) and 8 companies in US (1: Pharma; 2: Agribusiness; 3: Insurance; 4: Package Delivery; 5: Mobility; 6: Financial Services; 7: Consultancy; 8: Fintech) – the international benchmarking were conducted with high leadership of the companies (VPs, COOs and CPOs) and they dedicated private sessions sharing strategic procurement plan, main challenges they faced, high priorities topics and lessons learned from the journey they conducted. Overall, even though their Procurement function is in a high maturity level in those companies they are still investing in modernizing that function, since all of them believe that Procurement is a strategic function to increase the companies’ competitiveness. 

The purpose of this paper is to describe how a traditional Brazilian bank has structured its procurement transformation journey along a main objective of creating a role model procurement function.

Keyphrases: Benchmarking, Digital Transformation, Organizational modernization, Procurement Transformation

@booklet{EasyChair:9767,
  author    = {Douglas Klimak},
  title     = {Procurement Transformation Journey Created by a Brazilian Bank in a Unique Way},
  howpublished = {EasyChair Preprint 9767},
  year      = {EasyChair, 2023}}