Australia

Details

  • Service: Advisory, Management Consulting, Business Performance Services
  • Type: Survey report
  • Date: 15/05/2012

The Power of Procurement 

Expectations of procurement are shifting. Not so long ago, procurement was considered an add-on service. Today, many executives are increasingly looking to procurement to engage the business in strategic conversations about how the supply chain can be optimised to deliver the greatest returns.
The Power of Procurement
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In 2011 KPMG, in association with CPO Agenda, conducted a global global survey of 585 procurement leaders from across all industry groups and sectors.

 

Survey results show a lack of focus on ongoing supplier relationship management and even less participation in the 'make versus buy' decision process. It also points at a lack of preparedness around supply chain risk.

 

This report offers five key recommendations for tackling these challenges:

 

  • A place at the table – Work more closely with key stakeholders, understand the business strategy and priorities and identify how procurement can add value in order to truly become a strategic business partner.
  • Stretch beyond cost savings – Ensure there is a sound capability in category. management, strategic sourcing and SRM within the procurement team.
  • Assess the optimal procurement operating model.
  • Take a more active role in risk management.
  • Maximise the use of technology and Management Information.