Procurement as a function is on a journey toward greater importance and influence. As it evolves beyond its transactional and back office roots, the department is becoming a strategic player focused on total value delivered including supporting revenue goals, reducing total cost of ownership, and developing partnerships with key suppliers.
However, when discussing procurement’s alignment with the overall business it becomes imperative to develop and establish a rapport with the stakeholders and executive team. Aligning the procurement department with the business strategies is of great interest to CPO’s and CEO’s alike.
Karl-Heinz Müller, former Supply Chain Executive at Siemens and Vodafone and thought leader in global Procurement, discusses, how purchasing provides value to the organization from an end-to-end perspective, and which skills are required to successfully establish an integrated purchasing function.