THE BUSINESS REVIEW FOR PROCUREMENT LEADERS
Procurement is expanding beyond its traditional remit, but how far should it go? To answer this question, CPO Agenda gathered a group of senior professionals from companies such as British Airways, Continental, Danone, Merrill Lynch and Nestlé for its first executive debate in Brussels.
Panellists noted that procurement was helping to drive businesses forward commercially through, for example, early involvement in acquisitions and innovation projects, and being invited to participate in sales calls. Cost pressures, globalisation, consolidation in supply markets and the need to build brands in pursuit of shareholder value were seen as some of the key drivers.
There was a consensus that skilled, knowledgeable staff with a broad business perspective were needed to fulfil this potential, but that there was a shortage of such people. Other constraints included company history and culture, the CEO’s view and limited resources.
The limits to procurement’s role were variously seen to be set by the
executive board, the need to let other functions do their jobs, the capabilities
of your team, the limits you place on yourself as a leader, and the extent
to which you focus on cost out rather than value in.
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