Procurement is a function, activity, and role that is increasingly business critical to an organization’s overall value chain. In fact, many organizations are beginning to view procurement as a primary activity to increase top-line value and marginal growth.
Procurement is a business function that has undergone a lot of change in the last few years. Due to globalization, growing consumer demands on transparency, the pertinence of sustainable development and technological advancements, procurement and supply chain professionals have been highlighted as an integral part of their organizations.
Your procurement team is too old; face it. And, they’re not getting any younger. But, there’s a new wave of talent on the way in, and they’re about as blue eyed and bushy tailed as they come.
Millenials’ talent and knowledge may be contemporary, but their competencies aren’t as superior as they’d like to believe.
Supplier bases are a great source of potential innovation. But, unlocking collaborative supplier innovation requires clearly defined strategies and operations by a sourcing, procurement and/or purchasing team to ensure that suppliers’ competencies are being leveraged to their fullest potential.
Procurement is amongst some of the most rapidly changing business areas, and maybe for the better. Only time will tell if the coming digital transformation of various business areas, just like procurement, will make for positive outcomes. But, in the meantime, there is still a large population of procurement professionals, strapping up their boots every morning, and doing their darndest.
Procurement and sourcing teams are heavily reliant upon the effectiveness of the suppliers they choose to collaborate with. Relationship management between buyer and supplier is crucial to the success rate of a partnership, and both parties must learn to give and take to create fair/shared value.