The value-adding potential of procurement is now widely recognised. It was not always so. In previous times procurement occupied a peripheral position within most organisations. It was viewed in operational or tactical terms, but rarely as a strategic, value-adding activity.
Finding out what the market can provide is essential to the role of a procurer. Indeed, the term ‘reverse marketing’ has been used to capture the role of procurers in proactively identifying who can offer them what in the marketplace.
It has long been recognised that there are three important levers to increase procurement capability – people, process and technology. While much activity has been focused on the first two components, Procurement and Supply will host the first-ever two-day event focused on procurement technology.
‘Tail spend’ refers to the 20% of a company’s spending with 80% of suppliers, often comprising small and irregular amounts not overseen by a central procurement function. While separately these payments may not make much of a dent, together they can really start to add up.