In an earlier post, I talked about the need for procurement leaders to move beyond cost savings.
On my travels, it seems that many procurement leaders are still struggling to get their message across.
So, if procurement cannot define its value then why should it be taken seriously by anyone else?
To close the gap between procurement and the strategic goals of the means moving “beyond cost savings” which perpetuates the image of procurement as an isolated support function, dealing with savings initiatives. The term initiative suggest something that starts and ends and fits the role of many purchasing organizations that are frequently asked to come to the rescue and are then subsequently shelved again once the initiative is over.Procurement must break this cycle by shifting the emphasis from taking part in initiatives towards providing an ongoing essential process as part of “business as usual” for the day to day benefit of the business. In other words procurement must be part of the businesses DNA.
Purchasing leaders must, therefore, work closely with their colleagues to define in business terms how its activities impact on their particular businesses. They must instigate the monitoring and reporting systems to enable achievements to be articulated in real terms that are meaningful to their business leaders.
Only then will procurement start to be heard.
Nuff said …