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The Procurement Value Proposition

Book Description

The aim of The Procurement Value Proposition is to contemplate the value proposition to the business of contemporary Procurement and Supply Management. Business organisations are going through rapid external and internal organisational changes due to an increased focus on sustainability and corporate responsibility, technological advances, geo-political and macro-economic change and demographic shifts. Value and what it means is the key purchasing and supply chain management challenge the authors seek to address in this book. If purchasing and supply chain managers are to embrace this challenge they have to change the ways they operate. This requires new ways of thinking about supply structures and processes and new skills and competencies. Consideration has been given to geographical contexts and differences highlighted between the US, the UK and China. With input, observations and case studies from CPOs, Commercial Directors and other Procurement and business leaders, this is an invaluable book which fills a gap beyond MCIPS, the generally accepted entry level of professional procurement. It will appeal to new high fliers in procurement organisations, both practitioners and consultants who wish to develop future practice and students studying MScs on Procurement.

Table of Contents

  1. Preface
  2. Acknowledgements
  3. Introduction
  4. Structure of the book
  5. How to use this book
  6. Notes
  7. PART A Foundations and establishment of contemporary procurement
  8. 01  What is contemporary procurement?  What is contemporary procurement?
  9. The emergence of procurement as a profession
  10. The emergence of procurement as an academic discipline
  11. Early developments towards modern procurement
  12. Procurement becomes supply (chain) management
  13. The dawn of the modern era: procurement as an enabler and value adder
  14. Purchasing’s legacy
  15. Towards procurement’s value proposition
  16. Case study: Pioneering category management at Ford Motor Company
  17. Conclusions
  18. Notes
  19. 02  Procurement maturity: understanding performance versus value  Procurement maturity: understanding performance versus value
  20. Organizations continue to grow their supply chain global footprint
  21. As companies expand globally, so does supply chain complexity
  22. Increased globalization brings increased risk of supply disruption
  23. Regulatory requirements are a big part of complexity
  24. Logistics network redesign and customization
  25. Challenges in supply chain and logistics infrastructure
  26. Increasing sustainability pressure
  27. What does this mean?
  28. Can procurement embrace complexity?
  29. Defining procurement performance and procurement value
  30. Value – the holy grail for procurement
  31. If the CEO was to ask you ‘how much might that price cost the business?’ could you answer?
  32. The right stuff
  33. How should we measure procurement’s performance?
  34. Looking forward
  35. Case study: Motivation for change – Biogen Idec’s transformation to world-class supply management
  36. Some conclusions
  37. Notes
  38. 03  From global trends to corporate strategy  From global trends to corporate strategy
  39. The key global trends
  40. The five game changers
  41. External impacts: what procurement must do today and in the future
  42. Developing corporate and procurement strategy to meet the challenges
  43. Case study: The Footwear material sustainability index
  44. Conclusion
  45. Notes
  46. 04  Five game changers: their impact on procurement and supply management  Five game changers: their impact on procurement and supply management
  47. Game changer no. 1: corporate social responsibility (CSR)
  48. Game changer no. 2: technological advances
  49. Game changer no. 3: globalization
  50. Game changer no. 4: demographic changes
  51. Game changer no. 5: the shift in the global economic centre of gravity
  52. Case study: Tiered supplier partnership and supplier association models
  53. Some conclusions
  54. Notes
  55. 05  Taking a practical approach to improvement: introducing the ACE model  Taking a practical approach to improvement: introducing the ACE model
  56. What do we aspire to be? Aligning procurement’s value and capabilities
  57. Re-evaluating the procurement function
  58. From zero to hero: procurement’s PR challenge
  59. Application of the ACE model: a tool kit for business leaders to implement change
  60. The smart things that top-performing procurement organizations do
  61. Case study: Becoming a trusted adviser – procurement transformation at a global insurance provider
  62. Some conclusions
  63. Notes
  64. 06  It’s all about people: talent acquisition and retention  It’s all about people: talent acquisition and retention
  65. The key issues
  66. Evidence of this change
  67. Case study: Value orientation through supply entrepreneurship and integrated business processes
  68. Different types of talent are needed for different roles
  69. Conclusions
  70. Notes
  71. 07  Cometh the hour cometh the man: realizing procurement’s potential by building winning teams  Cometh the hour cometh the man: realizing procurement’s potential by building winning teams
  72. A quick refresh
  73. Deep ‘smarts’ are key
  74. Brave new world
  75. Two big questions
  76. Building a winning procurement team
  77. Case study: The Thailand issue
  78. Some conclusions
  79. Notes
  80. 08  The dawn of procurement’s new value proposition: innovation, collaboration and focus  The dawn of procurement’s new value proposition: innovation, collaboration and focus
  81. The question of ‘best’ practice
  82. Issues in the management of modern procurement
  83. Procurement: why traditional approaches no longer fit
  84. Managing for innovation
  85. Managing markets
  86. Working with complexity
  87. The six signposts to procurement’s future value
  88. Case study: Harnessing the power of supplier innovation
  89. Some conclusions
  90. Notes
  91. 09  The future: from strategic procurement to value procurement  The future: from strategic procurement to value procurement
  92. The rise of strategic procurement
  93. Category management: the heartland of modern professional procurement
  94. Category management has to begin and end with stakeholders
  95. Influence is critical
  96. Value: is it time to reveal procurement’s latest game changer?
  97. Why value procurement differs from value-based procurement
  98. Defining value procurement
  99. Value procurement has to begin and end with customers
  100. Caveat emptor
  101. Taking the view from business to market
  102. So how does this change the game?
  103. The evolution of procurement’s value proposition
  104. The CPOS enigma
  105. Delivering commercial twist
  106. Case study A: Getting over the category management model
  107. Case study B: Honda of America’s emphasis on strategic cost management permeates every part of its business
  108. Some conclusions
  109. Notes
  110. 10  Reflections and conclusions  Reflections and conclusions
  111. Reflections
  112. Back to the five game changers
  113. Reflections on the five game changers from a procurement perspective
  114. Reflections on the consequences of procurement maturity and its value to business
  115. Attracting and retaining the best and the brightest procurement talent
  116. We are entering the era of the bimodal procurement professional
  117. Why risk has become the number one issue
  118. Procurement relationships in China
  119. Procurement must drive productivity to generate value for the business it serves
  120. Overcoming the barriers to value creation
  121. To conclude
  122. Notes
  123. PART B Innovation debates: creating your own value from procurement
  124. 11  Introduction to innovation debates  Introduction to innovation debates
  125. Event styles
  126. The innovation debates
  127. Notes
  128. References
  129. Further reading
  130. Index