The AT Kearney 2011 Assessment of Excellence in Procurement Study, published last week, found that 90 per cent of the 185 global companies surveyed believe the procurement function is performing a more strategic role, actively participating in developing business strategy. The report said there is a new wave of thinking on procurement, “It’s not just business as usual, it’s business as unbelievable.”

When the study began in 1992, procurement was primarily a back-office function and steadily over the years, there has been a shift towards procurement performing activities that add value with nearly three quarters of staff devoted to strategic activities.

The study found 13 companies, amongst the respondents, that consistently demonstrate high levels of procurement performance – from their findings they identified seven characteristics.

Leading businesses understand that procurement strategy must be aligned with business goals; the report found that leading procurement functions are 85 per cent aligned with the wider business in which they operate, while the rest are only 37 per cent aligned.

Those top companies outperform other study participants in their contributions to top and bottom-line strategies.

In terms of managing risk systematically, the report suggests that 80 per cent of companies are a natural disaster away from a major disruption. The top performers excel at managing risk.

Supplier relationship management is used more consistently and in a structured way to improve innovation, growth, better manage risk and improve supply chains. Leaders are 45 per cent more likely to develop their suppliers’ capabilities.

Leading procurement organizations tailor category strategies and are more likely to adopt technology. Most leaders are fully automated, with real-time access to data with technology in place to support contract management and compliance.

All thirteen firms take more aggressive steps to ‘win the war’ for talent building relationships with universities, recruiting and attracting experienced skilled individuals.

According to the report, the years ahead with be challenging with a continuance of economic uncertainty and ‘wild card’ disruptive event, but it recommends greater collaboration – to bring suppliers closer to company processes; getting creative – to attract, retain and engage the workforce; and getting connected – calling for a focus on technology for process improvements.