In growing businesses, the procurement discipline is advancing rapidly in terms of establishing its professional identity. In the past, the function of procurement was limited to expedition or placement of orders in many cases rather than a strategic transformational force. Now, Chief Procurement Officers (CPO’s) have transitioned into legitimate C-level business partners. This resulted from the evolving trend among companies to view procurement and supply as a source of competitive advantage rather than a function performed at the end of the supply chain. Hence, enterprises are beginning to realize the importance of placing dynamic people to lead this aspect of the organization.
Challenges Faced by Enterprises
Placing the right person at the right job is a critical component to a company’s success, but proves to be quite a challenge for any enterprise. This organizational necessity should be observed both in leadership and other key positions, as it enables organizations to transform from a transactional type of company to a strategic one; making them more purpose-driven as they work by setting out clear objectives. Another challenge is orchestrating a delicate balance between the requirements of the business and the capabilities of the outside supply base to impact both the bottom and top lines, which requires a special set of skills as an integrator. Such a role legitimizes the position of procurement and supply professionals as a part of the senior team. Other pain-points include risk management, and competitive or economic pressures, which again positions procurement at the forefront to manage risks faced by the company.
Checklist to Choose the Suitable Solution Provider
During the evaluation process, it is necessary to browse through the comparative landscape. Tools like data mining and spend management techniques allow procurement professionals to assess a wider range of suppliers, by matching the required capabilities to the vendor's skill-set. This may include criteria like the solution provider's financial health, quality of service, and history with your employer or within the industry.