How a Procurement TOM Drives Success

Procurement isn’t just about buying goods and services anymore. It’s become a strategic part of how companies grow, save money, and stay competitive. But without the right structure in place, procurement can quickly become messy, inconsistent, and full of missed opportunities. That’s where a strong Procurement Target Operating Model (TOM) comes in.

Think of a TOM as the blueprint for how procurement runs within your organisation. It brings clarity and consistency to what can often be a complex, sprawling function. When well designed, it can transform the way your business operates. Having a clear model in place can eliminate the chaos that comes from unclear roles and overlapping responsibilities. Instead of different teams all doing things their own way, a Procurement TOM lays out the playbook: who does what, how decisions get made, and what the process should look like from start to finish. The result? Less duplication of effort, fewer mistakes, and smoother operations across the board.

A big advantage is how it helps with managing supplier relationships. It can be tricky - balancing costs, quality, and innovation while keeping an eye on performance. A good TOM brings structure.  With clear strategies for selecting suppliers, negotiating contracts, and measuring success, you can build stronger partnerships that go beyond getting the best price. You’re creating relationships that are stronger and can weather the inevitable ups and downs of the markets.

And who doesn't want to save money? With the right procurement model, identifying areas of overspend or missing out on better deals is easier. Whether through smarter sourcing, negotiating better terms, or tightening up processes, a TOM helps shine a light on opportunities to cut costs without cutting corners.

One of the most powerful advantages of a Procurement TOM is how it ties procurement into the overall strategy of the business. Procurement doesn’t operate in a bubble, it’s deeply connected to finance, operations, and the supply chain. When everyone works from the same playbook, decisions become more strategic, and the business benefits.

And in a world where change is constant, a strong operating model doesn’t just keep the day-to-day running smoothly; it also gives you the flexibility to pivot, when necessary, without losing momentum.  Additionally, with better tools and technologies now part of modern procurement models, it’s possible to pull together insights from across the business helping you make more informed decisions.                      

A Procurement TOM isn’t just a document or a diagram. It's the foundation for running procurement in a way that’s efficient, strategic, and resilient. Done right, it’s not just about keeping costs down or speeding up processes (though it does those things too)—it’s about giving your business the tools and structure it needs to thrive, no matter what challenges come your way.

If you would like to know how we can help with creating and executing Target Operating Models in Procurement & Supply Chain, then please get in touch with us.

Article by Sarah Tweedale, Senior Consultant at 7 Step Solutions