Cost savings are critical for procurement organizations, and once the low-hanging fruit has been harvested, transformation may be the next step to unlocking ongoing procurement value. Transformation is a journey that businesses undertake in order to optimize the procurement organization and to embed category management expertise and process rigor in order to drive sustainable and long term savings.
Successful transformation enables the procurement organization to become a source of value and innovation to the business. For achieving this target, the implementation of procurement strategies needs do move beyond pilot implementations, and to be firmly anchored in the organization.
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.