The C-suite is getting crowded.
At the top levels of an organization, the chief procurement officer (CPO) is competing with other energetic and determined executives for influence and funding within an enterprise. Establishing procurement as a key strategic force is essential to ensuring that its value is recognized internally.
No doubt, procurement will continue to be held accountable for cost savings targets and category management responsibilities. But its portfolio is increasingly extending into support for product development, product management and manufacturing activities.
Indeed, procurement is particularly well positioned to both identify and oversee key “make versus buy” opportunities. Not only do these projects align to the core cost savings mission of most procurement departments, they also provide procurement teams the opportunity to fully leverage insights into external supply market conditions and internal manufacturing processes, capacity and strategy.
Success here requires a structured approach. Accordingly, this paper will outline a process that procurement can follow to facilitate these opportunities, taking into account key strategic, operational and financial considerations.
As part of this paper, we will also examine emerging market trends and provide examples that demonstrate how procurement can increase its strategic value by leveraging pre-existing relationships and knowledge capital.