United Kingdom

Details

  • Service: Advisory, Management Consulting
  • Type: Video
  • Date: 17/02/2012
  • Length: 2.08 Minutes

The Power of Procurement - Geographical comparisons 

Geographical Comparisons:

John Tros, Partner, KPMG in Netherlands: There’s a big difference between procurement organisations across the world. If you look to Asian procurement organisations, they tend to cooperate with the suppliers and by this cooperation they are able to answer market demand much more fast than European organisations. So I think you can see the examples of Toyota and Honda while they were the first companies who had the hybrid cars in the markets. If you then look to European organisations, they’re much more operated in silos. You’ve got a procurement organisation, you’ve got a demand organisation and you’ve got a production organisation and this procurement organisation is squeezing their suppliers. They are not searching cooperation models to enhance business development. It’s much more, you give me the best price and I will innovate my products myself and if you look, for instance, in Netherlands, you’ve got a few big companies which have squeezed their suppliers to the maximum and as a result, they have to invest heavily in innovation themselves.

 

Plenty of Opportunity

 

Richard Nixon, Partner, KPMG in the UK: Procurement’s got a lot of challenges still, a lot of opportunities and it has to focus on what value really means to the business.

KPMG has conducted one of the biggest global surveys into procurement functional excellence. The final video in a short series looking at the key themes arising from this survey discusses the differing trends between procurement functions on a regional basis.
 

Related videos

Our global Procurement professionals discuss key themes from the survey:

 

    1. Taking on a more strategic role
    2. The impact of the economic crisis
    3. Going beyond cost savings
    4. How to build Procurement’s profile internally
    5. Growing trend towards more centralised models
    6. Importance of supply chain risk management
    7. Key role of technology
    8. Geographical comparisons

 

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