To Benefit the Enterprise, Find Forward-looking Suppliers
Organizations that track supplier innovation and the ability to adopt collaborative technology benefit within and beyond the procurement function.
Many organizations recognize that procurement can provide the business with much more than simply getting the lowest cost for purchased materials and services. They see tremendous potential when the procurement function is aligned with the strategies and goals of other business units as well as the enterprise as a whole. This can take the form of involving other business groups in the selection and appraisal of suppliers, as well as selecting suppliers that can best meet the strategic needs of the organization. The question is whether organizations are taking steps to realize that potential.
According to APQC’s Open Standards Benchmarking in procurement, organizations involve a variety of groups in the selection and appraisal of suppliers, from marketing and sales to the logistics function, depending on the needs of the organization. However, APQC’s data also shows that organizations most often involve the R&D/engineering group and manufacturing group in this process. About 60 percent of organizations involve the R&D group in supplier selection and appraisal, and just over 56 percent of organizations involve the manufacturing group.
These results indicate that organizations are aiming to use procurement to meet the broader needs of the organization. By including functions involved in the design and manufacturing of their products, organizations can make sure that the materials purchased by the procurement function provide the best value with respect to cost, design, functionality, and suitability for their manufacturing processes.
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Many organizations recognize that procurement can provide the business with much more than simply getting the lowest cost for purchased materials and services. They see tremendous potential when the procurement function is aligned with the strategies and goals of other business units as well as the enterprise as a whole. This can take the form of involving other business groups in the selection and appraisal of suppliers, as well as selecting suppliers that can best meet the strategic needs of the organization. The question is whether organizations are taking steps to realize that potential.
According to APQC’s Open Standards Benchmarking in procurement, organizations involve a variety of groups in the selection and appraisal of suppliers, from marketing and sales to the logistics function, depending on the needs of the organization. However, APQC’s data also shows that organizations most often involve the R&D/engineering group and manufacturing group in this process. About 60 percent of organizations involve the R&D group in supplier selection and appraisal, and just over 56 percent of organizations involve the manufacturing group.
These results indicate that organizations are aiming to use procurement to meet the broader needs of the organization. By including functions involved in the design and manufacturing of their products, organizations can make sure that the materials purchased by the procurement function provide the best value with respect to cost, design, functionality, and suitability for their manufacturing processes.
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