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


 

 

Career opportunites

Tutor and Coordinator

  • Gauteng Operations, Planning & Inventory Permanent Procurement Management Supplier / Business Development
Purpose of the job: To plan, coach, advise

Commodity Manager

  • <500 000 Commodities Gauteng Procurement Management
Are you a Commodity Manager looking for the

Supply Chain Professional

  • <500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Supply Planning

  • <500 000 Gauteng Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer Procurement Consultant
Are you an Industrial Engineer looking to make

Logistics Manager

  • >500 000 Gauteng Logistics & Warehousing Supply Chain
Seeking vibrant industry specific individuals seeking new opportunities

Operations Manager

  • <500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for an Operations Manager to take into

Supply Chain Systems Administrator

  • >500 000 Gauteng Procurement Management Strategic Sourcing Supply Chain
One of South Africa's leading, mining companies is

Logistics Manager

  • <500 000 Gauteng Logistics & Warehousing Procurement Management
Are you an experienced Logistics Manager looking for

Continuous Improvement Manager

  • >500 000 Gauteng Procurement Management Supply Chain
I specialize in placing professionals in the Supply

Warehouse Assistant

  • <500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory
I am currently looking for ambitious Demand Planner,

Internal Procurement Officer

  • <500 000 Gauteng Permanent Procurement Officer / Specialist Strategic Sourcing
Position Available: Internal Procurement Officer Status : New ...More

Supply Chain Officer

  • <500 000 Gauteng Procurement Officer / Specialist Supply Chain
Seeking dynamic candidates to take to the market

Supply Chain Planner

  • <500 000 Free State Operations, Planning & Inventory Supply Chain
Seeking dynamic candidates to take to the market

Senior Buyer

  • >500 000 Buyer Gauteng Procurement Management
Tech-Pro specialises in placing professionals in the Supply

Industrial Engineer

  • <500 000 Gauteng Industrial Engineer
Tech-Pro specialises in placing professionals in the Supply

Warehouse Manager

  • >500 000 Gauteng Logistics & Warehousing Operations, Planning & Inventory Supply Chain
Seeking hands on individuals that come from an

Manufacturing Purchasing Specialist

  • >500 000 Procurement Officer / Specialist Supply Chain Western Cape
A leading auto manufacture company based in Cape

Procurement Sourcing Specialist

  • <500 000 Gauteng Procurement Consultant Strategic Sourcing
A Leader in the Supply Chain industry is

Planning Manager

  • >500 000 Gauteng Operations, Planning & Inventory Procurement Management
Looking for Planning Managers to take into the