10 Reasons why Procurement should own the supplier relationship?
One of the many battles procurement often finds itself in is its right to manage the supplier relationship. Often there is in no governance in place to support procurements claim. A claim which must be won if it is to claim its place at the top table and steer outsourcing strategy for their organisation.
Below we present a wider functional view on potential ‘decision rights’ on the supplier relationship together with 10 reasons why procurement is best placed to lead supplier relationship management:
Potential ownership stakes:
10 Reasons why Procurement should own the Relationship:
As a business process procurement cuts across all the functional activities of an organisation. Its overarching claim therefore lies in providing a centre of excellence to manage this critical process, where skills, capabilities and process can be developed to maximise the value delivered by suppliers. There are many other arguments that can be made but procurements claim is compelling and should be built upon.
In the May edition of “Transform” we argue that CPO’s must make the case to own the supplier relationship as part of establishing an enterprise wide governance process for strategic outsoursing. Only when this case is won and accepted by the wider business community will procurement be able to say it is truly strategic.
Let us have your views.