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The Power of Procurement - A global survey of Procurement functions



The report highlights that procurement functions need to extend their activities and take on a more strategic role within the organization. The survey results show a lack of focus on ongoing supplier relationship management and even less participation in the 'make versus buy' decision process. It also points at a lack of preparedness around supply chain risk.



These are a.o. the five identified key areas where Procurement could add significant value to its organisation:
- Partnering with the organization: To achieve a place at the boardroom table and become a true strategic partner, procurement must do more work to align to key stakeholders and understand the business operations.
- Moving beyond cost savings: Driving costs from supply contracts will always be a central tenet of procurement. However, many organizations seem to be struggling to extend their activities into core capabilities such as category management, and beyond into demand management, supplier relationship management (SRM), and risk management.
- Achieving the optimal operating model: While most procurement organizations have already adopted a more centralized operating model, many still face challenges in translating this into strategic value for their business.
- Prioritizing supply chain risk: The research demonstrates a worrying lack of leadership in the area of supplier risk. Procurement will need to aggressively push the inclusion of supply chain risk on the broader business agenda, in order to protect the business from the uncertain and turbulent economic environment.
- Leveraging systems and technology: While supply chain technology and business systems have evolved rapidly, many procurement functions seem unable - possibly unwilling - to leverage these new capabilities in order to bring greater automation to their business.

Procurement professionals have a signifacant opportunity to enhace the value they deliver, and consequently the competitive advantage of their organizations. However, it is up to CPOs and Supply Chain Directors to make the most of this opportunity.

Download Now The Power of Procurement - A global survey of Procurement functions :
http://www.kpmg.com/CH/en/Library/Articles-Publications/Documents/Sectors/pub-20120225-the-power-of-procurement-en.pdf

Lundi 26 Mars 2012
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