THE BUSINESS REVIEW FOR PROCUREMENT LEADERS
How do you embed strategic sourcing so that it becomes a core business competence? Through interviews with CPOs and others, the author identifies six performance levers that need to be applied across category management, process and functional outsourcing, major supplier relationship management, and business transformation and value chain initiatives.
The first lever is alignment of procurement strategy with business drivers, which includes brand-building and customer satisfaction. The second is about executive sponsorship and engaging stakeholders across the business. Lever number three is organisational design: redefining roles so that the function is structured appropriately.
Governance and disciplined programme management – implementing fit-for-purpose processes that drive compliance – is the fourth lever; while lever five is about leadership, behavioural change, and developing procurement professionals with high-level commercial and influencing skills.
The sixth, and final, lever is about allocating resources to activities that matter and implementing processes and technology that cut cycle times and capture value more quickly than in the past
