Procurement Operating Models (POMs) are a hot topic as organizations strive to find the organizational structure and governance that will maximize customer service and value generation for the enterprise. Yet the concept of a POM and its variations and nuances can often seem theoretical while questions remain around how to turn the model into reality. Recent research demonstrates that Procurement Target Operating Model is not a one size fits all solution, but rather the design must be tailored to reflect the nuances of the spend under management and the organizational need, and that an effective Operating Model includes an evaluation of Spend Ownership, Procurement Service Delivery Models and the interface between the Procurement groups as well with the business line, section and regional network. To meet the objectives of customer service and value generation, the optimal ownership of spend is determined by the uniqueness of the demand specifications across consuming groups and the nature of the supplier market, while the service delivery model for each procurement process should be determined by the core or non-core importance of the process to the business, the strategic or transactional nature of the process as indicated by the type and level of judgment required, and finally the proximity requirements of the process.

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