An operating model defines how people, roles, decision rights, processes, evidence, technology, data, controls, measures, and governance work together to deliver an outcome. A procurement operating model goes beyond a workflow diagram by assigning ownership and interfaces across procurement, finance, operations, IT, legal, requesters, approvers, and suppliers. It should reflect actual exceptions and handoffs.
In plain English
It explains who does the work, how decisions happen, and how systems and controls support the process.
Illustrative example
At Northstar Industrial Systems, the intake-to-pay model assigns ownership for request quality, sourcing, approval, order execution, receiving, invoice exceptions, and ERP reconciliation.
- Related terms
- ProcessFirst; Decision right; RACI; Procurement orchestration
- Lifecycle stages
- Discover; Map; Govern
- Stakeholders
- All stakeholders