How Should Procurement Teams be Organised

The chaos of Procurement Team Org Structures - we have no agreed position

Start-ups face unique challenges when it comes to procurement. These include limited resources, budget constraints, and balancing short-term and long-term needs.

I’ve seen this first-hand.

I posted on LinkedIn about Procurement Org Structure, knowing that two things would happen:

• I’d get owned by so many people who had a different view

• I’d get a wave of support around the ideas

And this was intentional. I wanted to assess the general consensus around Procurement Org Structures, and using an inflammatory position - “Start-Up” would guarantee a response.

I want to set out my stall here.

I’ve built and/or influenced the Building of 3 Teams.

1 - Established Player - Team size would be 2 People. Supply Chain Lead and Commercial Manager

2 - Head of Commercial, 2x Commercial Managers (scale-up)

3 - Head of Procurement, 3x Managers, 3x Leads (start-up)

These were 3 out of 4 of my previous Procurement/Contract Management Roles. I’ve been in this battle: getting budgets, the right applicants, and tech. It’s hard work. Let’s get into this - the following is a mix of my views and those of the Procurement Community.

But this piece could be considered through the lens of any company size.

Key Challenges in Start-up Procurement:

1. Limited resources and budget constraints

2. Balancing short-term and long-term needs

3. Adapting to industry-specific requirements

4. Scaling the procurement function with company growth

You may note that in scale-ups or well-established high-revenue businesses, these challenges still exist.

Opportunities for Start-up Procurement Teams: