In procurement, maturity is not only about having better tools, more contracts, or more experienced buyers. It is about how well procurement contributes to the business.
Some organisations still use procurement mainly to place orders and solve delivery problems. Others involve procurement early in product development, supplier strategy, risk management, sustainability and innovation. Van Weele’s procurement maturity model helps explain that development.
In this article, you will learn what the procurement maturity model is, how the six maturity stages work, and how you can use the model to assess your own procurement organisation.
LHTS classification
Role: Management
Process: Procurement strategy and procurement capability development
Level: Advanced
Related course: True Role of Procurement
Quick answer: What is the procurement maturity model?
A procurement maturity model is a framework used to assess how developed a procurement function is. Van Weele’s model describes six maturity stages, from transactional purchasing to value-chain orientation. The model helps procurement leaders understand where their organisation is today, what type of value procurement currently delivers, and what capabilities are needed to move to the next level.
The six stages show a development path from buying as an administrative activity to procurement as a strategic contributor to business performance, supplier innovation and customer value.
What is van Weele’s procurement maturity model?
Van Weele’s procurement maturity model describes how purchasing and procurement develop over time inside organisations. The model was developed in the context of purchasing professionalisation and is commonly linked to the work of Arjan van Weele, Frank Rozemeijer and Gerco Rietveld. Their six-stage model explains how procurement moves from a reactive, operational role toward a more integrated and strategic business role.
The model is useful because it does not only look at cost savings. It also considers organisation, supplier relationships, cross-functional cooperation, information systems, skills, performance measurement and procurement’s position in the company. Later research also describes this development as a movement from transaction orientation toward value-chain integration.
A key point is that procurement maturity should not be understood as a race to reach stage 6. Not every organisation needs the same maturity level in every category. A small local business, a public organisation, a manufacturing company and a global technology company may need different procurement capabilities. The model is most useful when it is used as a structured assessment tool, not as a theoretical label.
The six stages of procurement maturity
The exact wording of the stages may differ between sources. In practical procurement, the model is often explained as six levels: transactional orientation, commercial orientation, purchasing coordination, process or internal integration, supply-chain or external integration, and value-chain orientation. The important point is the direction of development: from functional buying toward cross-functional and external value creation.
1. Transactional orientation
At the first stage, procurement is mainly administrative. The focus is on placing orders, finding suppliers when needed, solving urgent shortages and making sure operations do not stop.
There is usually no clear procurement strategy. Spend visibility is weak, processes are informal, and procurement is often placed low in the organisation. Success is measured by whether the business receives what it needs on time.
Typical signs:
Procurement is reactive. Buyers work mainly with purchase orders, confirmations, delivery issues and basic supplier contact. Internal stakeholders often buy directly from suppliers without much procurement involvement.
Main improvement step:
Create basic spend visibility, define purchasing responsibilities, standardise purchase order routines and introduce simple supplier and contract control.
2. Commercial orientation
At the second stage, procurement becomes more commercially active. The focus moves from simply securing supply to negotiating lower prices and better commercial terms.
Buyers start using quotations, tenders and price comparisons. Procurement becomes more visible because management can see savings and price reductions. However, the focus is often still narrow. Lowest price may dominate the discussion, while total cost, quality, risk and supplier capability receive less attention.
Typical signs:
Buyers negotiate actively, compare suppliers and report savings. The organisation may still have fragmented spend and limited category structure.
Main improvement step:
Move from unit-price negotiation to total cost thinking. Start grouping spend into categories and create a more structured supplier base.
3. Purchasing coordination
At the third stage, procurement starts coordinating across business units, plants, departments or locations. The organisation begins to see the value of common buying policies, framework agreements, supplier segmentation and coordinated category work.
This stage is important because it creates leverage. Instead of each department negotiating separately, procurement can consolidate demand, reduce supplier fragmentation and improve contract compliance.
Typical signs:
There are common purchasing procedures, preferred suppliers, basic category plans and more formal supplier selection. Procurement may also start reporting contract coverage and compliance.
Main improvement step:
Build category management routines, improve internal stakeholder alignment and make sure contracts are actually used.
4. Process orientation / internal integration
This stage is often described in the original model as internal integration or cross-functional purchasing. Procurement is no longer only a department that negotiates after a need has been defined. It becomes part of cross-functional problem solving.
The focus shifts from unit price to total system cost. Procurement works with engineering, operations, finance, quality, logistics and other functions to improve specifications, reduce complexity, improve supplier performance and make better sourcing decisions.
Typical signs:
Cross-functional sourcing teams are used. Procurement is involved earlier. Processes are more standardised. Performance measures include more than price, such as quality, delivery reliability, internal customer satisfaction and process efficiency.
Main improvement step:
Strengthen early procurement involvement, integrate procurement into business planning and improve end-to-end process ownership from need definition to supplier performance management.
5. Supply-chain orientation / external integration
At this stage, procurement is integrated not only internally but also externally with key suppliers. Supplier management becomes more advanced, and selected suppliers are involved in product development, process improvement, planning, risk reduction and innovation.
Procurement starts thinking beyond the buying transaction. The question becomes: how can the supplier base improve the performance of the whole supply chain?
Typical signs:
The organisation uses strategic supplier relationships, supplier development, joint improvement plans, shared forecasts, risk workshops, sustainability scorecards and integrated systems with key suppliers.
Main improvement step:
Develop structured supplier relationship management. Identify which suppliers should be managed transactionally and which suppliers should be developed as strategic partners.
6. Value-chain orientation
At the highest stage, procurement is fully connected to business strategy and customer value. Procurement contributes to how the company competes, innovates, manages risk, improves sustainability and creates value for end customers.
This is no longer only about purchasing goods and services efficiently. It is about designing the most effective value chain to support the organisation’s strategy.
Typical signs:
Procurement is involved in strategic decisions, innovation, market positioning, sustainability, technology roadmaps and supplier-enabled value creation. Supplier capability becomes part of competitive advantage.
Main improvement step:
Connect procurement strategy directly to business strategy. Measure procurement not only by savings, but also by value contribution, resilience, innovation, sustainability and customer impact.
How this connects to the procurement role
This article is mainly connected to the management role in procurement.
An operative buyer may recognise stage 1 and stage 2 challenges in daily work: late orders, unclear suppliers, missing contracts and urgent delivery issues. A tactical buyer may work mainly with stage 2, 3 and 4 topics such as RFQs, category plans, supplier selection and cross-functional sourcing. But the maturity model itself is primarily a management tool.
Procurement managers use the model to answer questions such as:
- Where is our procurement function today?
- What value do we currently deliver?
- Which capabilities are missing?
- Where do we need stronger processes, systems, skills or governance?
- Which maturity level is realistic for our business context?
That makes the model especially useful for procurement leaders, category managers, sourcing managers and anyone involved in developing the procurement function.
Where this fits in the procurement process
The procurement maturity model is not one single step in the procurement process. It sits above the process as a management and improvement framework.
How to assess your procurement maturity
A simple way to use the model is to assess your organisation across several dimensions. Modern maturity assessments often combine quantitative data, stakeholder interviews, gap analysis, process review and improvement roadmaps. KPMG, for example, describes maturity assessment across strategy, process, organisation and technology/data, while academic maturity frameworks also emphasise strategy, performance management, supplier management, skills, innovation, sustainability and ethics.
Use these questions as a practical starting point:
1. Strategy and governance
Is there a clear procurement strategy?
Is procurement strategy linked to business strategy?
Does top management understand procurement’s role beyond savings?
Are buying policies clear and followed?
2. Spend and category management
Do you know your total spend?
Is spend grouped into categories?
Are category strategies documented and actively managed?
Do buyers use market knowledge before sourcing decisions?
3. Process and systems
Are procurement processes standardised?
Is there a clear process from need definition to contract and supplier management?
Are digital tools used effectively?
Is procurement data reliable and accessible?
4. Supplier management
Do you segment suppliers by risk and business impact?
Are strategic suppliers managed differently from transactional suppliers?
Do you measure supplier performance?
Do you work with supplier development or joint improvement plans?
5. People and capability
Do procurement professionals have the right commercial, analytical and stakeholder skills?
Are roles clearly defined between operative, tactical and management procurement?
Is procurement involved early enough in business decisions?
Is there a learning plan for developing procurement capability?
6. Value contribution
Is procurement measured only on savings?
Do KPIs include quality, delivery, risk, innovation, sustainability and stakeholder satisfaction?
Can procurement show how it contributes to business outcomes?
Does procurement help create value for the end customer?
A practical maturity assessment example
Imagine a company where buyers are skilled negotiators and run regular tenders, but spend data is incomplete, contracts are stored locally, stakeholders involve procurement late, and supplier performance is measured only when something goes wrong.
This organisation is probably not at stage 1, because procurement is doing more than placing orders. It may have reached stage 2 or early stage 3. The next improvement should not be “become strategic” in a vague way. The practical next step is to build coordination: spend visibility, category structure, preferred suppliers, contract compliance and cross-functional sourcing routines.
Another company may already have strong category management and standardised sourcing processes, but suppliers are not involved in innovation, risk planning or sustainability improvement. That organisation may be around stage 4. The next step is to strengthen external integration through supplier relationship management and joint development plans.
The value of the model is that it makes improvement specific.
Common mistakes when using the procurement maturity model
Mistake 1: Treating the model as a scorecard only
A maturity model should not be used only to label the organisation as stage 2, 3 or 4. The real value is in identifying gaps and deciding what to improve next.
Mistake 2: Assuming every organisation must reach stage 6
Not every procurement function needs full value-chain orientation in every area. A small indirect spend category may not require the same maturity as a strategic supplier base in product development.
Mistake 3: Jumping directly to digital tools
Digital procurement can improve maturity, but technology alone does not create maturity. Processes, roles, data quality, stakeholder behaviour and supplier management must also develop. Deloitte’s 2025 CPO survey highlights that digital value depends on the combination of technology and talent, not technology in isolation.
Mistake 4: Measuring only savings
Savings matter, especially in the earlier maturity stages. But mature procurement also measures quality, risk, resilience, innovation, sustainability, contract compliance, stakeholder satisfaction and supplier performance.
Mistake 5: Ignoring the change journey
The original model itself recognises that procurement development may not be a smooth, automatic progression. Organisations may move in steps, face resistance or develop differently depending on business context.
Why the model still matters today
Procurement has changed significantly since the early maturity models were developed. Today, procurement leaders are expected to manage cost, supply risk, sustainability, supplier innovation, digital tools and business resilience. KPMG describes the current CPO agenda around cost management, supply-chain risk, supplier innovation and sustainability, while CIPS links procurement excellence to governance, capability, influence, control and value delivery.
That makes the maturity model more relevant, not less relevant.
It helps procurement teams avoid two common problems. The first is staying too operational for too long. The second is claiming to be strategic without having the processes, data, skills and supplier management capability to support that claim.
A mature procurement function does not only buy better. It helps the organisation make better business decisions.
Learn more
If you want to go deeper into the role procurement should play in an organisation, the Learn How to Source course True Role of Procurement is a natural next step. The course gives a structured foundation for understanding how procurement moves from operational buying to value creation, business support and strategic contribution.
FAQ
What is a procurement maturity model?
A procurement maturity model is a framework for assessing how developed a procurement function is. It helps identify the current level of capability and the next improvement steps.
What are the six stages of van Weele’s procurement maturity model?
The six stages are commonly explained as transactional orientation, commercial orientation, purchasing coordination, process or internal integration, supply-chain or external integration, and value-chain orientation.
Is procurement maturity only about cost savings?
No. Cost savings are important, especially in earlier maturity stages, but mature procurement also contributes to quality, supplier performance, risk management, sustainability, innovation and customer value.
Is stage 6 always the goal?
Not always. The right maturity level depends on the organisation, industry, spend profile, supplier market and business strategy. The model should guide improvement, not create an unrealistic target.
How can a procurement team move to the next maturity level?
Start by assessing current gaps in strategy, spend visibility, processes, systems, supplier management, skills and performance measurement. Then define a realistic improvement roadmap with clear priorities.
Conclusion
Van Weele’s procurement maturity model is a useful way to understand how procurement develops from a transactional support function into a strategic contributor to business value.
The model shows that procurement maturity is not built by one improvement project. It develops through better governance, stronger processes, clearer roles, improved supplier management, better data, stronger skills and closer alignment with business strategy.
The practical question is not only “Which stage are we in?” The better question is:
What must procurement improve next to create more value for the organisation?
Listen to Arjan van Weele in following Youtube video from 2014.