Procurement functions are faced with a significant and rather unique set of challenges, requiring innovative and transformative solutions.
Procurement functions are asked to generate "harder" savings (as opposed to "soft" cost avoidance), requiring them to explore new territories in terms of scope and/or types of levers addressed. Sourcing strategies category management approaches need to better align to the companies’ overall vision and objectives, raising the profile and demand of the Procurement function. Simultaneously, global organizations are moving faster than ever. Procurement has a critical, strategic role to play, for example: to accelerate the go to market in new geographies through agile sourcing strategies; to capture suppliers’ innovation and immediately adapt to new, disruptive technologies. To stay ahead of evolving challenges, leading Procurement organizations are dedicating significant efforts to establish a stronger set of capabilities to support new, transformative profiles.
This compendium represents our latest thinking and experiences on how companies have addressed these challenges to become best-in-class.
For Procurement to become a high performing resource, the entire top management, and in particular the CEO, needs to create the right conditions and onboard the entire organization.Gregory Kochersperger, Global Head, Value Sourcing and Supply Chain Practice