Tuesday 23 August 2016

Transformed procurement into a linchpin of an enterprise

Authored by: Usama Shahid  

Many top companies has transformed their procurement operations in profound ways to become a real strength of their company.

On the other hand many procurement departments are still struggling to adapt with strategic innovation strategies and to become strong pillar for their companies, Mainly because they remain trapped in the circle of old traditional procurement.

Working with leading organizations as procurement consultants, we have experienced that leading organizations are always ready to adapt with new strategies according to their industry challenge and achieve the future milestone that will make them leader in respective industry. This challenge adoption approach has makes these companies the best.

Leading organizations must drive innovation to their department operations, foresee the risk with strategic vendors involves not only in tangible materials or equipment, but also in difficult services and important assets like data and company strategies.

In this era, approaches and abilities that will established the procurement success are not required in  past, The new procurement world lies with new risks, threats and opportunities.
CPO are start to understand higher order risk management tools and techniques and they should select a small team of quantitatively trained sourcing professionals to spearhead the development of the next generation of supply and supplier risk management approaches.

Ten years from now procurement management teams will be able to calculate the following quantitative risk metrics with fluency:

  •  Total cost of risk at the supply chain, category and supplier level 
  •  Total risk mitigation investment across the supply chain 
  •  The right price of risk transfer to suppliers, customers and third parties such as     insurance  companies

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