After the global financial crisis, companies are actively looking for skilled, qualified procurement professionals who can cut costs, optimize global supply chain functions and deliver potential savings.
Internationally qualified procurement professionals are the key to creating a cost-conscious culture in the organization. They are poised to become change leaders instead of mere order takers.
Ineffective governance, policies and procedures or a lack of appropriate procurement engagement usually result in faulty purchasing decisions. Companies that are not fully leveraging their spending are leaving themselves open to business and commercial risk.
Many procurement departments do not have sufficient focus on monitoring and tracking compliance with companies facing real challenges. Challenges in maintaining control over both direct and indirect spending, and in supporting demand management activities.
Marketplaces worldwide are witnessing an unprecedented pace of change. As a result, businesses are rapidly re-evaluating their operating models and market strategies. They do not just withstand these market forces, but also to capitalize on them.
Procurement professionals have a significant role to play in helping organizations achieve their objectives and prepare for the uncertainty ahead.
Highly mature procurement departments have stepped-up their game, fundamentally changing the way they work with the business and – as a result – are increasingly taking a leadership role in helping drive growth and reduce costs across the organizations.
For the Procurement function to achieve a place at the table, it should do more work to align with key stakeholders and understand the business operations.
This means moving up the value chain to ensure that the function is involved much earlier in the decision-making process. Also, clearly demonstrating how active involvement adds tangible value to both the bottom and the top lines.
We need to re-orient the procurement process to include other value-added services to the business. This requires a culture-shift, taking procurement away from the tactical, category-focused culture that seems to dominate most functions, to someone active in the strategic decision-making and organizational goals processes of the business.
Undoubtedly, Chief Purchase Officers (CPOs) and Supply Chain Directors will increasingly find themselves reassessing their operating models to squeeze greater value from their activities around the world.
• Companies not fully leveraging their spending are at risk.
• Skilled procurement professionals can deliver potential savings for the company.
• The highlight is on transforming from mere order takers to effective change leaders.