How to develop a target operating model
When Genpact develops a target operating model project, our outside perspective shows you target procurement through a new lens.
The engagement typically lasts between eight and 14 weeks. Along the way, we benchmark to best-in-class companies and give you a heat map of problems to address.
The first step is to get a clear picture of the end-to-end target operating model components – a procedure that involves gathering and evaluating existing process maps and volumetric data. One goal is to assess how many handoffs take place between people and platforms. That's important, because the more handoffs there are, the more likely errors will occur.
The map also highlights the disparity in processes across sites, geographies, and business units because too much variation reduces enterprise-wide visibility. We talk to people performing similar functions in different ways to identify and understand why variations occur. Business and procurement stakeholders play an important role here, because their knowledge, information, and corporate insights ensure that follow-up discussions are relevant.
As soon as this first stage is completed, you'll have a comprehensive view of the as-is state.