Sorry to say it, but that time of the year has arrived. And if you are like me, taking stock of the accomplishments of the past year along with being aware of what has transpired around you are important steps in preparing resolutions for next year. I am of course talking about pondering business challenges and imperatives as opposed to personal imperatives like reducing my cholesterol level…
A big and growing part of awareness these days comes from social media. As I was catching up on some reading this weekend, I found myself perusing a number of posts by analysts, senior procurement executives and solution providers (like myself) that discussed the evolving role of procurement. It’s fair to say that there is a lot of agreement regarding the evolution of procurement — from transacting to savings to value, and the consensus continues to grow to include risk and collaboration. From my completely unscientific assessment, I think “innovation” may be the hot new buzz term describing procurement’s ever-changing mandate.
Now don’t get me wrong, I’m all for innovation but I found that the broad characterization of procurement, its priorities and strategies, tends to gloss over the facts on the ground. Do you feel the pressure?
Most of the chatter is about or by those who are well ahead of the curve or have complex, often direct material supply chains. The importance of concepts like innovation and collaboration vary significantly by vertical, category and organizational culture. For many, though, these esoteric themes have little applicability to their day-to-day challenges and just plain don’t resonate.
With the approach of year’s end, you too will inevitably be assessing progress over the course of the year and setting priorities for next year—your New Year’s resolutions. Guilt and peer pressure can be strong influences in setting of priorities. But rest assured, if collaborating and innovating with your suppliers are not at the top of your resolution list, you are not alone and you are not misguided.
So go ahead and make your work resolution list, and it’s OK if spend visibility, supplier compliance and savings are your top priorities.
* To learn more about best-in-class competencies for sourcing functions, including CPO’s top challenges and drivers for success, download this Ardent report or contact us to discover just how much more valuable and effective your company’s procurement processes can be.