SUPPLY CHAIN
STRENGTHEN SUPPLY CHAIN RESILIENCE
DEVELOP SUPPLIER PARTNERSHIPS AND CO-INNOVATION
ZERO-BASE
CATEGORY STRATEGIES AND VALUE CREATION
LEADERS CAN RE-IMAGINE PROCUREMENT IN FIVE KEY AREAS
ACCELERATE DIGITAL AND ANALYTICS
ADOPTION
TRANSFORM TO A FUTURE-READY OPERATING MODEL room for procurement to improve , and to move towards what Mark calls ‘ procurement with purpose ’, what Alex was saying about transparency and trust . Unfortunately , buyers have been pushed to focus on price because this produces immediate savings , but long term this is not sustainable , and it destroys value – value in your supply chain and value on your own site .
MP : What we find is that organisations have to create a centre of excellence in terms of how they work with suppliers , and also startups . This can sit anywhere within the organisation ; it doesn ’ t have to sit in procurement .
What we ’ re seeing in organisations with progressive procurement is they ’ re automating the transactional side , to free-up resources around business strategy , such as how organisations partner with their supplier
This is always linked into the CTO , the CMO or other commercial leads , depending on whether it ’ s on the growth , innovation or sustainability agenda .
So procurement is very much the facilitator of the innovation process , but it is not the owner of innovation .
Should you procure products , or product ecosystems ? ERL : It ’ s important a company has an overall strategic vision and that this is aligned with the approach of their procurement team . The team cannot by itself do anything .
Also , with regard to supplier programmes , the point of them is collaboration , because you need strategic buyers – you need an entrepreneur mindset . So this is the basis on which you should select suppliers to include in your programme , and digital is really going to help on this side .
52 August 2023