Along with corporate services, capital procurement is often the last part of the procurement organization to mature.
It’s an opaque category that doesn’t immediately get attention for a number of reasons. It’s usually non-repeatable spend. It’s often decentralized and managed by folks at the site level. It’s sometimes assumed by management that these folks know this technical category best and meddling in their business will cause problems.
Because it’s often the domain of engineering, procurement must sometimes wedge themselves a seat at the capex table.
Sustainability is a word you seem to hear everywhere today, as consumers become more conscious of the environment. As you would expect, sustainability plays a significant role in the food supply chain. As an example, the commercial fishing industry has ramped up their focus on providing a more sustainable product. Sustainable seafood suppliers employ methods that simultaneously reduce bycatch, promote both small and large business distribution, and improve seafood quality. All seafood harvested within the United States is, in fact, sustainable, as the U.S. has developed a comprehensive process to ensure quality as well as monitor and improve the programs fisheries have in place.
This is second in a two-part series. Part 1 can be found here.
Purchasing leaders must not only be great at managing the complex functions of their department, but they must also become savvy communicators who know how to demonstrate the strategic value that the department lends to their organization. In a world of competing budgets and the struggle to hang on to resources, knowing how to market your purchasing organization to power stakeholders is a skill that you must have.
This is the first in a two-part series. Part 2 will run on Thursday, September 11th.
These days, with tightened budgets and enlarged job expectations, it’s important for CPOs, purchasing managers, and buyers to know how to prove their strategic value to the organization. This can be a huge challenge for most people. Knowing how to market yourself is extremely important, particularly if you want to move up in your career. We’ve all seen less talented people get promoted, simply because they are better at managing their image to supervisors and internal stakeholders.
Editor's note: on July 24th, I wrote a post 'On Storytelling and Procurement' in response to an executive leadership and communication post by Chip Scholz. Dr. Tom DePaoli, an author and management consultant, offered up some comments based on his own experience that were far too good to leave buried in a comments string. They are as follows:
One of the oldest methods of passing down knowledge is oral storytelling. Usually an ancient sage would be the keeper of the stories and pass them down to other tribe members. I highly recommend this method for supply chain professionals.
Supplier diversity programs have been a hot topic for some time now. While the need for minority-owned and diverse supplier programs at most companies has only recently begun to take shape, the growth has been astronomical. In fact, a study done by CAPS Research states that 71.79% of organizations expect their total supplier diversity program spend to increase greatly within the next two years. ('Measuring Supplier Diversity Program Performance', March 2012)
Even though support for diversity programs has been rising, there is still some hesitancy from businesses to develop them. This reluctance is often due to inaccurate perceptions regarding the value they can offer a company, but these myths are often easy to debunk.
It is often challenging, sometimes nearly impossible, to gain access to real time market intelligence that can provide you with insight into your industry or supplier relationships. Without access to this information or knowledge of best practices, it can be difficult to ensure your company has a competitive advantage. When delving into benchmarks it is important to understand the components of benchmarking, its benefits, and how the involvement of the spend owner is critical for the benchmark to provide the most value.
This guest post is a team effort from Source One Management Services. If you would like to comment, you can do so by posting below, contacting them on Twitter @GetSavings, or contacting them directly here.
The outlets for procurement and supply chain news have no shortage of recommendations for improved business processes, new ideas, and technologies your department should implement to “modernize” or “optimize” or any number of other “-izes”. If you have read any of Source One’s contributions – here, on other publications, or on our own blog – we make just as many recommendations.
There has been a lot of focus in the past year on Supplier Relationship Management, and rightfully so. As the efforts of Strategic Sourcing initiatives begin producing diminishing returns, SRM is heralded by most to be the next step: focusing more on delivering value to the organization and developing relationships that can produce competitive advantages in the market. However, an SRM policy is only effective if the proper suppliers are in place, which is why it is routinely classified as the next step after strategic sourcing. There is little value in curating and managing relationships with suppliers that are not firmly aligned with your organization’s strategic goals.
This is the last in a series of posts on performance reviews and objective setting for the start of the New Year. Click here to read my recent posts on performance reviews from the manager’s and employee’s perspectives, as well as objective setting for procurement managers.
Are you just joining us? We’re working our way through a series of posts on performance reviews and objective setting for the start of the New Year. Click here to read my recent posts on performance reviews from the manager’s and employee’s perspectives.
If your company works on a calendar year financial close schedule, your Annual Operating Plan (AOP) for 2014 is probably well-developed by now. While these AOP objectives will form a large part of your staff’s goals and objectives, a more comprehensive approach is required for achieving great things in 2014.
Developing and effectively communicating goals and objectives to your staff may be the most crucial thing you can do as a manager.
Just joining us? Last week we looked at performance reviews from a procurement manager’s perspective. This week we are looking at the same topic from the perspective of the person being reviewed.
You will likely have a performance review coming early in the New Year. Some people see performance reviews as “facing the music” while others see them as an opportunity to “toot their horn”. For the sake of your own career, I recommend thinking in terms of the latter.
Review time is an opportunity to display your accomplishments, demonstrate your capabilities, and discuss potential opportunities with your manager. At a higher level, this is also a good time for introspection to honestly access your future with the organization.