Financial supply chain management Financial supply chain management Many corporations are looking for innovations to strengthen relationships with core suppliers and improve the economics of their supply chains The solutions Sponsored by a buyer organisation, our flexible Supplier Finance SF product range provides selected suppliers with financing opportunities during distinct phases of the Financial Supply Chain. Pre-Shipment finance This process begins at the placement of a confirmed order by the buyer. Post- Shipment finance This may be triggered by the electronic provision of invoice information to us.
But times have changed: These days, procurement organizations within companies are playing pivotal roles in the success of global firms in ways that old-fashioned purchasing managers could never have imagined.
In this special report, Wharton faculty and procurement experts at The Boston Consulting Group discuss why the procurement function has risen to such prominence in a highly competitive global environment, and how, as supplies of critical commodities tighten and prices rise, companies can strategize to mitigate these and other risks.
Challenges Facing Procurement Organizations Procurement has become an integral part of corporate performance and is drawing increased attention from senior management.
In this interview, Andreas Gocke, a BCG partner and managing director, spoke with Knowledge Wharton about the most critical challenges facing procurement organizations over the next five to 10 years, including training and employee development, managing global sourcing offices and ensuring collaboration across corporate departments.
Can you talk a little bit about the biggest challenges that procurement organizations face today? We did a quick survey about the most challenging topics for the next five to 10 years.
Surprisingly enough, people — training and development — was the number-one topic as the key challenge for procurement organizations. Number two was also related to organizational aspects. It was the organization of global sourcing. That is, how to set up and how to manage global sourcing offices.
That is also more in terms of processes, a linkage between the global sourcing offices and the headquarters. And number three is cross-function and collaboration. That is, how does procurement work with not only engineering and quality management — which has been the nature of the procurement department for a long time already — but also with other functions like sales and marketing when it comes to requirements management?
These are the top three: Are those three much different from the challenges that faced procurement people 10, 15 or 20 years ago? Have they listened and do they have the right organizational position? In most organizations we see right now, this point has been reached already. The war for talent [is seen] in all three regions, by the way.
You mentioned a moment ago that procurement has become more accepted as an integral part of organizations. The share of material costs and the share of purchased services are growing continuously.
We have some comparisons. What kind of external delivery for automotive OEMs, for instance, is like that — the pacesetter of these developments [over] the next couple of years?
But if you see the qualitative aspect as well, sourcing now also becomes the gatekeeper for supplier innovation…. The technology competence with suppliers is growing more and more.
You can easily measure it by the number of patents which are applied for in many industries. And even in the customer organizations, the supplier will influence our technological development more and more.
Therefore, sourcing will be the organizational unit which will manage these aspects. If procurement is becoming increasingly important and strategic, getting back to something that you mentioned, which was retention and development of key people in this area, where are organizations finding the best people?
How do they go about doing that and is it a difficult task?
This is one of the key questions where we need to confess to not having the right answer yet. Unlike most other functions, there is not the academic purchasing manager education.
Very few universities around the world really focus and specialize on purchasing as an education path by itself.internal factors affecting procurement process of supplies in the public sector; a survey of kenya government ministries john karanja ngugi and hildah w.
mugo*. Organizational management increasingly needs to understand and mitigate its risks effectively to ensure long-term success. Effective risk management requires, among other things, a comprehensive and ongoing set of tools and processes to handle the dangers associated with third-party relationships.
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