Procurement divisions can do more to lead strategic initiatives that enhance value and reduce cost according to top management.
That’s the finding of Capgemini Consulting’s 2010 Global Chief Procurement Officer (CPO) Survey released today.
Almost 80 percent of professionals say top management expects them to improve the overall value contribution of the Procurement function.
Based on responses from over 150 global companies across Europe, Asia and the Americas, the survey reveals there is a clear and emerging focus on strategic initiatives that can enhance the value delivered by procurement.
These strategies include proactive value creation through innovation; contribution to corporate sustainability objectives; developing reciprocity agreements with suppliers; increasing speed to market and a focus on Total Cost of Ownership.
Cost reduction continues to be a major focus area with over 40 percent of respondents reporting savings targets at nearly 10 percent for 2010.
Strategies that Procurement executives are employing to achieve these targets include contract re-negotiation, tighter contract compliance, global sourcing, hedging and moving to outsourced procurement services.
There is a continued trend towards centralised procurement operating models with over 40 percent of the surveyed companies favouring this model and another 50 percent favouring a centre-led/hybrid model.
read more on
http://www.supplychainreview.com.au/news/articleid/70077.aspx
Showing posts with label procurement strategies. Show all posts
Showing posts with label procurement strategies. Show all posts
Tuesday, October 5, 2010
Tuesday, January 5, 2010
Purchasing trends for last ten years
Top 10 Purchasing Changes In 10 Years
By Charles Dominick, SPSM
How Are Purchasing & Sourcing Different Today?
The new year's arrival made me ponder how purchasing in 2008 differs from purchasing in 1998. Here are the top 10 purchasing changes in those 10 years.
10. Technology Proliferated. Today, eProcurement and eSourcing are two of the most useful practices in purchasing. Ten years ago, those terms were unheard of.
9. Center-Led Procurement Arrived. In 1998, even top purchasing departments processed purchase orders. Today, purchasing departments aim to centralize the supplier selection process, not transactions, which are delegated to end users or outsourced.
8. Purchasing Grabbed More Spend. When purchasing departments deliver results, management seeks more spend that Purchasing can positively impact. Once sourced by other departments, categories like fleet management, benefits, and travel services are now sourced by Purchasing.
7. Social Responsibility Became A Top Priority. Whether for philanthropy or to avoid media scandals, management counts on Purchasing more than ever to buy from diverse suppliers, make environmentally-conscious decisions, and do business ethically.
6. Measurement Was Mandated. With the potential of smart purchasing widely known, senior management more strictly holds their purchasing departments accountable for results. The use of purchasing metrics and dashboards is now commonplace.
5. Strategic Sourcing Went DIY. In the '90's, strategic sourcing was done mostly by consulting firms hired to help companies reduce spend. Today, many companies have their own refined and documented in-house strategic sourcing processes.
4. Supplier Roles Expanded. In 1998, there was talk about "partnering" with suppliers. Today, there's action. Top purchasing departments actively develop their suppliers and look to the supply base for ideas, better performance, and innovation.
3. Global Sourcing Went Mainstream. Ten years ago, only the progressive companies were searching abroad for suppliers. Now, in some countries, it is difficult to find products manufactured domestically.
2. The CPO Position Got Adopted. This past year alone, I've encountered an unprecedented number of folks with the title "Chief Procurement Officer."
1. The Supply Chain Was Recognized. In the last decade, companies more closely analyzed the way material flows into, through, and out of the organization. This "supply chain" focus has those who once just placed orders now responsible for inventory, warehousing, outbound logistics, and distribution.
Source : Nextlevelpurchasing.com
By Charles Dominick, SPSM
How Are Purchasing & Sourcing Different Today?
The new year's arrival made me ponder how purchasing in 2008 differs from purchasing in 1998. Here are the top 10 purchasing changes in those 10 years.
10. Technology Proliferated. Today, eProcurement and eSourcing are two of the most useful practices in purchasing. Ten years ago, those terms were unheard of.
9. Center-Led Procurement Arrived. In 1998, even top purchasing departments processed purchase orders. Today, purchasing departments aim to centralize the supplier selection process, not transactions, which are delegated to end users or outsourced.
8. Purchasing Grabbed More Spend. When purchasing departments deliver results, management seeks more spend that Purchasing can positively impact. Once sourced by other departments, categories like fleet management, benefits, and travel services are now sourced by Purchasing.
7. Social Responsibility Became A Top Priority. Whether for philanthropy or to avoid media scandals, management counts on Purchasing more than ever to buy from diverse suppliers, make environmentally-conscious decisions, and do business ethically.
6. Measurement Was Mandated. With the potential of smart purchasing widely known, senior management more strictly holds their purchasing departments accountable for results. The use of purchasing metrics and dashboards is now commonplace.
5. Strategic Sourcing Went DIY. In the '90's, strategic sourcing was done mostly by consulting firms hired to help companies reduce spend. Today, many companies have their own refined and documented in-house strategic sourcing processes.
4. Supplier Roles Expanded. In 1998, there was talk about "partnering" with suppliers. Today, there's action. Top purchasing departments actively develop their suppliers and look to the supply base for ideas, better performance, and innovation.
3. Global Sourcing Went Mainstream. Ten years ago, only the progressive companies were searching abroad for suppliers. Now, in some countries, it is difficult to find products manufactured domestically.
2. The CPO Position Got Adopted. This past year alone, I've encountered an unprecedented number of folks with the title "Chief Procurement Officer."
1. The Supply Chain Was Recognized. In the last decade, companies more closely analyzed the way material flows into, through, and out of the organization. This "supply chain" focus has those who once just placed orders now responsible for inventory, warehousing, outbound logistics, and distribution.
Source : Nextlevelpurchasing.com
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