European leaders in procurement

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European Leaders In Procurement magazine (ELP magazine) is the leading business title for senior procurement and supply chain executives in Europe. The publication offers topical news, thought-provoking features, profiles, comments and much more.

European Leaders in Procurement provides knowledge to the procurement and supply chain professionals across Europe in a 'blog' format, it contains an interesting article about outsourcing and details 'Success Factors for Professional Purchasing'.

It tackles the key issues for a professional in purchasing;

  • achieving transparency, especially regarding company-wide purchasing activities, purchasing volumes,
  • framing contracts
  • detailed information about current and potential suppliers.

The author,Martin Berr-Sorokin, claims a company can attain this comprehensive view through integrated Spend management, Contract management and spend analysis. Contract compliance begins when the imposing policy, process, and system changes to ensure compliance is mandated on procurement professionals.

Procurement outsourcing is becoming an important decision tackled at very senior levels of most companies, to address the key decision is outsourcing Procurement important to a business the following factors need to be considered;

  • 1. Delivering measurable results
  • 2. Accessing and analyzing spend data
  • 3. Completing projects on time and within budget
  • 4. Building internal commitment
  • 5. Establishing consistent, efficient processes
  • 6. Defining a spend management strategy
  • 7. Supporting multiple business units/geographies
  • 8. Managing strategic commodities
  • 9. Ensuring compliance with established processes
  • 10. Increasing the effectiveness of supplier relationships

In developing an outsourcing policy, a company needs board level decisions around the following;

  • Does the current internal procurement function provide value for money? How can you judge Value for Money
  • Can you allow the outsourcing of Procurement, and if so what categories are appropriate?
  • What are the critical dependancies on your timeliness and quality of supply?

The leaders in the business for the future will recognise the importance of achieving savings through optimisation of their assets, and focus on the critical supply-chain. In doing so companies will achieve a degree of cost savings through deploying lean and Strategic sourcing individually, they'll need to combine both elements to achieve next level savings. For example, it will no longer be enough to optimise for lowest total landed cost on a delivered unit basis without taking into account additional value-added capabiliites that a supplier can offer such as Vendor Managed Inventory (VMI).

The Chartered Institute of Purchasing and Supply is a professional association which has some interesting links to other procurement case studies and Exostar provides services for procurement professionals to gain compliance and analyse trends.

[edit] External links

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