Will procurement continue to exist in its current form? - New book

| 0 Comments

 

Procbook.jpgA number of current issues in procurement will affect every professional, according to a new book, Procurement at a Crossroads: Career-Impacting Insights into a Rapidly Changing Industry. As authors Kelly Barner and Jon Hansen see it, the choices individuals make today will determine the direction of their careers and the future of procurement itself.

 

While Barner and Hansen are hopeful, they can imagine procurement at some companies, especially those that are focused on price and transactions, "going the way of the dinosaur." As these companies automate purchasing processes, they will have little need for a separate department of buyers. The authors also foresee some leaders in procurement who are well educated and highly skilled leaving the profession for better opportunities. These individuals, they note, could help procurement by spreading its message and information about its value in a company.


But no procurement? It doesn't seem possible. Instead, the book suggests, it is more likely that procurement will evolve into an increasingly strategic function focused on supplier management and serving as a source of strategic ideas.


That transformation may already be evidenced by who is entering the profession. Once, individuals landed in procurement "by accident" or were sent there because they showed little promise, and purchasing was considered a backwater. Unmotivated to change, these practitioners are now realising it's time to retire or leave the profession. In contrast, the millennials currently entering procurement have university degrees in supply chain management and are eager to begin careers that can be challenging and dynamic.


Consider the example of Kendra Lisak, sourcing manager at Amway. Lisak recently received the 2016 Excellence in Purchasing Indirect Categories (EPIC) Rising Star Award for showing promise in her career as a procurement professional. With a supply chain management degree from Michigan State University, she manages Amway's contingent labour spend, a responsibility that used to belong to a more seasoned colleague. Recently, she identified and resolved a supplier issue that had disrupted production at the company's manufacturing facilities.


Another momentous change facing procurement is how departments are organized and who is leading them. Many companies are reorganizing their procurement department under a chief procurement officer (CPO), who reports to the CEO. Will the title CPO ever become as ubiquitous as that of chief financial officer (CFO) or chief information officer (CIO)? Companies that largely focus on cost tend to have their procurement teams report to the CFO. Others, mainly in manufacturing, may be organized under a chief operating officer (COO). That may not change, but it is clear that neither of those functions does as good a job at managing relationships with suppliers as those that report to a CPO. As competition becomes more global, effective supplier management (and having a senior executive dedicated to it) will become even more important.


Bob Murphy, vice president of supply chain and CPO at IBM, demonstrates how it's done. An engineer by trade, Murphy rose through the ranks to his current post in 2014 and is committed to continuing the transformation of procurement from a tactical effort to a strategic discipline that his predecessors began in the 1990s. Murphy and his team are responsible for US$50-billion in annual spending, including spending that's outsourced by other companies to IBM. To add value to these organizations, they use advanced analytics to learn how suppliers can help with innovation.


Defining what procurement is and identifying its future leadership are just two of the important issues examined in Procurement at a Crossroads, and Murphy and Lisak are just two examples of individuals making career choices that work for both their companies and themselves. They, and others like them, are helping to ensure the future of the profession.

This article first appeared on supplychainquartely.com 
 

Leave a comment


SmartProcurement Newsletter
X

Please enter your details below to receive the SmartProcurement Newsletter for FREE on a regular basis.

As part of the SmartProcurement Newsletter you will be receiving World Class Procurement News, Tools, Tips, Tactics, Procurement Training updates, Upcoming Events, and the latest Procurement Career Openings.

* Email Address:
* Title:
* First Name:
* Surname:
* Company:
  Position:
* Country:
* Public / Private:

 

 

Career opportunites

Risk Control Manager

  • <500 000 Gauteng Permanent Procurement Consultant Projects / Category Management
R450 000 - R550 000 per annum.Location: Johannesburg ...More

Demand Planner

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Procurement Consultant
Salary: R500 000 - R500 000 per annum.Location: ...More

Fuel Logistics Manager

  • <500 000 Logistics & Warehousing Operations, Planning & Inventory Permanent Western Cape
Salary: R600 000 - R720 000 per annumLocation: ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Projects / Category Management Supply Chain
R650 000 - R700 000 per annum.Location: Johannesburg.A ...More

SENIOR BUYER

  • <500 000 Buyer Gauteng Permanent Supply Chain
R500 000 - R550 000 per annum,Location: Midrand,A ...More

Supply Chain Analyst

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R600 000 - R700 000 CTC per ...More

Supply Chain Manager

  • <500 000 Gauteng Permanent Supplier / Business Development Supply Chain
Salary: R600 000 - R700 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Permanent Projects / Category Management
Salary: R450 000 - R550 000 per annum,Location: ...More

Demand Planner

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
Salary: R500 000 - R500 000 per annum,Location: ...More

Warehouse and Distribution Manager

  • <500 000 Logistics & Warehousing Permanent Procurement Management
Salary: R650 000.00 - R850 000.00 CTC pa,Location: ...More

National Supply Chain Manager

  • <500 000 Gauteng Permanent Procurement Management Supply Chain
Salary: R900 000 - R1 000 000 per ...More

Procurement Specialist

  • <500 000 Gauteng Permanent Procurement Management Procurement Officer / Specialist
Salary: R380 000 - R420 000 per annum,Location: ...More

Supply Chain Analyst Lead

  • <500 000 Analyst Gauteng Permanent Supply Chain
Salary: R1 000 000 - R1 100 000 ...More

CIPS Tutor and Coordinator

  • Gauteng Permanent Projects / Category Management Supply Chain
Commerce Edge South Africa,Division: Commerce Edge Academy,Location: Johannesburg, ...More

Warehouse Manager

  • <500 000 Gauteng Industrial Engineer Logistics & Warehousing Permanent
Salary: R480 000 - R600 000 per annum.Location: ...More

Senior Buyer

  • <500 000 Buyer Gauteng Permanent Procurement Consultant
Salary: R600 000 - R650 000 per annum.Location: ...More

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Permanent Supply Chain
Salary: R700 000 - R800 000 CTC per ...More

Warehouse Manager

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Permanent
R400 000 - R480 000 CTC per annum.Location: ...More

Supply Chain Analyst

  • <500 000 Analyst Permanent Supply Chain Western Cape
R400 000 - R500 000 per annum.Location: Cape ...More

Commodity Manager

  • <500 000 Commodities Gauteng Permanent Procurement Consultant
R650 000 - R750 000 per annumLocation: Cape ...More