Welcome to the boardroom: the emergence of procurement as a strategic function

Procurement as a strategic function

Procurement as a strategic function

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.

So what changed?

Trends in global business, industry, organisational management and business education have all contributed to a new perspective. Notable among the changes are the following:

• Borderless commerce has placed pressures on firms’ cost bases. This, in turn, has caused firms to search for efficiencies throughout the supply chain.

• Realisation that suppliers can represent a source of competitive advantage, through either lower prices, higher quality, or more innovative products and services.

• Much greater emphasis on transparency and corporate compliance. This has percolated down to transparency and compliance in purchasing.

• Purchasing and supply chain management are now included alongside finance, management and marketing as part of the third-level business curriculum. Today’s graduates are more aware of the link between purchasing and organisational competitiveness than ever before.

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Ready to bring your team to the attention of the boardroom? Discover how by downloading our white paper, ‘5 steps to procurement as boardroom strategy and how e-sourcing can make it happen’.

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