Global

Details

  • Service: Advisory, Management Consulting, Business Performance Services
  • Industry: Financial Services, Telecommunications, Life Sciences
  • Type: Video
  • Date: 2/28/2014
  • Length: 4:53 Minutes

Building the Procurement Organization of the Future 

Volker Pyrtek, BuyIn:

KPMG
cutting through complexity


EXECUTIVE TALKS


BUILDING THE PROCUREMENT ORGANIZATION OF THE FUTURE


Dr. VOLKER PYRTEK
CEO, BuyIn – The Procurement Joint Venture of Deutsche Telekom and Orange


in conversation with


CHRISTIAN RAST
Partner, Head of KPMG Global Procurement Center of Excellence


BUILDING THE PROCUREMENT ORGANIZATION OF THE FUTURE


Learning procurement techniques is often easier than adapting entrepreneurial behavior


DR. VOLKER PYRTEK: Entrepreneurial and strategic skills is a resource which is not widely available in our profession. If I was a CEO or a CFO and I had to hire a CPO, I would look for an entrepreneurial CPO, and he has not to be grown up in the purchasing profession. You can find entrepreneurs and strong business people who can run a procurement department, and I think you can easily learn some of the procurement techniques than learn entrepreneurial behavior and entrepreneurial mindset,


[00:01:00]


which is so important in that position. A CPO has such an influence, or can have such an influence, a positive influence and impact, he can make a difference, but it pretty much depends on the capability of this person, so I think, certainly I would not hire a very traditional procurement type, traditional type of CPO, but would really look for in an entrepreneur, yeah, don’t forget, it’s one third of your costs which are spent in the market, supply, so it’s tremendous value.


BUILDING THE PROCUREMENT ORGANIZATION OF THE FUTURE


Procurement organizations must lock in core competencies and skill sets


In general, I think in procurement departments, you have to substitute and change and upskill and not only from within your profession, you have to bring people with an outside perspective into the business


[00:02:00]


that can be an engineer who’s helping you to identify cost drivers, it can be somebody who has good market understanding to help you to redefine your value chain and [INDISCERNIBLE] projects, can be finance people, so the procurement community of the future is certainly kind of mélange of different skills, [INDISCERNIBLE] just kind of contract management capability, which is pretty old-fashioned.


BUILDING THE PROCUREMENT ORGANIZATION OF THE FUTURE


Managers must have a broad and heterogeneous background to better challenge the status quo


In my personal profession, to become successful in procurement, it’s certainly important to start somewhere else. I believe a good manager has a broad background, a lot of experiences in different areas, maybe you’ve run your own business for a while, or you have been working in the mid-size company before you entered the large group, so at least I can say for myself that it helped me tremendously. I’ve run my own company, I’ve been working for a mid-size company, I’ve been working for large corporates. It gives you a broader


[00:03:00]


background, and your capability to challenge what you hear and what you see is just increased by having kind of a more heterogeneous background. So my recommendation is just try and move around and learn.


BUILDING THE PROCUREMENT ORGANIZATION OF THE FUTURE


A high performing procurement organization can be characterized by significant investment in skills management and capability development


CHRISTIAN RAST: The limitation and capabilities, talents and skills is one of the three most important topics for CPOs. The reason for that is that in the past, companies have typically not invested in their procurement organization and into procurement people, and now becoming aware that procurement is really playing a strategic role within their future, they do have


[00:04:00]


on the one side, a lack of resources, but on the other side, massively increasing challenges, and this gap has to be filled quickly within the next two to three years. For that reason, the performing procurement organization can be characterized by significant investments into skill management and capability development.


KPMG
cutting through complexity


[Disclaimer]

 

As procurement evolves from the traditional back-office function to playing a more strategic role, organizations must decisively move to fill talent gaps by investing in skill and capability development. Volker Pyrtek, CEO of BuyIn, discusses how he balances entrepreneurship with procurement expertise when evaluating employees and future leaders. When equipped with a diversity of skill sets, experiences and competencies, procurement functions are better positioned to deliver enhanced value.

Dr. Volker Pyrtek

CEO, BuyIn – The Procurement Joint Venture of Deutsche Telekom and Orange

Volker heads BuyIn, the 50:50 Procurement Joint Venture between Deutsche Telekom and Orange with offices in Paris and Bonn. He is responsible for strategic procurement activities in the customer equipment, network and service platforms areas of both operators, covering a spend of approximately 13 billion euros in almost 50 countries. Volker has more than 20 years of experience in various executive positions and sectors. He joined Deutsche Telekom in 2002, as Head of Procurement for T-Mobile International, Bonn. In 2007, he became Chief Procurement Officer for Deutsche Telekom. Before that, Volker held various management positions at Bayer in Leverkusen. In 1997, he became CEO of Investment Bank Spütz, Düsseldorf, and simultaneously became Chief Finance Officer (CFO) of Tullet&Spütz, London. He was co-founder of the E-Procurement marketplace Goodex in 1999 as CFO and Director for Central Europe.

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