Sourcing and Procurement to the Fore

People working in the supply chain space know the kinds of contributions a well-run, technology-enabled procurement function can have on the organization. The problem sometimes has been getting that message to others in the organization—both up at the “C Level” and horizontally to other functional areas.

We ran a couple of articles in Supply Chain Management Review’s October 2009 issue  that suggest that the message is finally getting out and people are starting to take notice of the true top- and bottom-line potential of the procurement and sourcing functions.

Our 7^th Annual Survey of Supply Chain Progress, which we conduct in collaboration with CSC Consulting and Michigan State University, show that top management is increasingly looking to procurement as the source of cost-reduction. It seems as the economic going gets tougher, the bigger the opportunity for the supply management folks to  rise to the forefront. In fact, among our survey sample of supply management professionals, well over half said that y are being called upon to cut their sourcing/procurement costs by 6 percent or more over the next 12 months.

Another article in that same October issue confirms the magnitude of the business impact of a well-run procurement function.  Gregg Brandyberry, the former procurement chief at GlaxoSmithKline and other companies, details how procurement can take the lead role in generating savings for an organization. He calls it creating your own “stimulus” package, and he offers valuable tips on getting that package accepted and supported throughout the organization.

If you’re interested in the power and potential of the procurement function (and you’re not already a subscriber to SCMR), I would be happy to send you a copy of our October 2009 issue that contains these important articles. (They won’t be online for a while.)  Just send me your mailing address via the blog “Comments”  and I’ll get a copy out to you—while supplies last!