In these days, no matter which Supply Management publications you read, surely you have seen articles that focus on how the capabilities of procurement organizations are being tested. They are required to help their businesses deal with the impact of globalization, supply market volatility, supply chain disruption, rising costs of raw materials, regulatory overload, talent shortages, and much more. If ever there was a need for procurement to lead the way, it is now.
I strongly believe that Procurement needs to lead the way by developing strategies that are aligned with overall organizational business strategies, gaining visibility to spend data, battling rising costs of materials/services, maximizing actual cost savings by working with other departments in the organization to achieve compliance with the contracts while preventing leakage, tackling regulatory requirements, supporting sustainability and Green initiatives, preventing and mitigating risks, using innovative software/technologies for sourcing, to just name a few examples. Nevertheless, none of these strategies and initiatives will succeed if procurement professionals do not work closely with their key suppliers to maintain active and frequent communication with them. Actively working with suppliers throughout the relationship will ensure that the organizations achieve all the benefits anticipated when purchasers finalize negotiations with those suppliers.