Prior to the mid-2000s, procurement focused on transactions. Emphasis transitioned to strategic procurement to realize the financial benefits of developing sourcing strategies via analyses of the market, suppliers, and spend. Aggregating demand, consolidating suppliers, improving negotiations, and developing strategic supplier relationships became the focus.

However, many organizations still need to solve for multiple issues:

1.) transactional and strategic work continue to be performed by the same people;

2.) non-standard processes and outdated technology;

3.) specialized work that belongs in Centers of Expertise (COEs);

4.) customers finding it difficult to access services and support.