Procurement as a function is on a journey toward greater importance and influence. As it evolves beyond its transactional and back office roots, the department is becoming a strategic player focused on total value delivered including supporting revenue goals, reducing total cost of ownership, and developing partnerships with key suppliers.
However, when discussing procurement's alignment with the overall business it becomes imperative to develop and establish a rapport with the stakeholders and executive team. Aligning the procurement department with the business strategies is of great interest to CPO's and CEO's alike. In this series find out how executive teams are better aligning their procurement functions with their business strategies to help ensure they are acting as business partners versus service providers.
Fredrick Spalcke, Chief Procurement Officer of Philips, discusses and analyses how successful organisations can no longer develop a product without having competent procurement personnel in the dialogue from day one.
Dr. Volker Pyrtek, CEO of BuyIn, discusses how BuyIn's procurement organisation has delivered to their bottom line by streamlining and improving design-to cost and procurement engineering which identify cost drivers within the company.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.