Procurement

Smart businesses are promoting the procurement function higher up the value chain, allowing it to get involved in decisions at an earlier stage. A greater understanding of operations and a more active role will lead directly to increased revenues and profitability.

Saving money and more

Procurement will always mean buying things more cost-effectively, but it’s about more than that. Today, good practice not only reduces costs but also creates value by improving relationships with suppliers, and the way that innovation, demand, cash and risk are managed throughout the supply chain.

Smarter operating models

Centralisation is normal in major procurement operations. But it doesn’t guarantee optimal efficiency. To stay ahead of the game, senior executives are looking at how the function operates and asking how it can align with and support the future direction of the organisation.

Harnessing talent

The principal means for realising the biggest savings and getting the best ideas from suppliers is to have your most innovative, skilled people working with them. It is essential to have a clear strategy for acquiring and developing the best talent, even if that means outsourcing.

Reducing risk in the supply chain

In an unpredictable world, businesses are taken by surprise when something goes wrong in the supply chain. It can lead to horsemeat in beef burgers, explosions on oil rigs, huge costs and devalued brands. The best procurement leaders do not wait for a crisis but see reducing risk as a core, day-to-day activity.

Making systems work

Many procurement functions are lagging behind in the use they make of information technology. They are failing to automate processes, to embrace cloud technology, or to get a better return on investment in new systems. Procurement should be at the forefront of ensuring that businesses use big data to best effect.