Procurement - Into the Future

Many companies are considering how they source inputs and manage suppliers as playing an increasingly significant role in protecting their margins, brand and growth into the future. Companies believe that in order to become ‘combat ready’ for this new era of global competition for capital, they will need to continue to dramatically up-skill and increase resources in these new ‘frontline troops’. The business case for investing in improving the organisation’s overall sourcing capability will be based on the benefits of managing risk and delivering value from this complex, global network of suppliers, not just on achieving cost savings alone.

As the prime interface between your business and its supply chain, Procurement is uniquely positioned to help the organisation adapt to these changes, while delivering sustainable bottom-line benefits. They will do this by driving global cost competitiveness, managing the sustainability footprint of the ‘extended enterprise’, protecting corporate reputation, delivering supplier innovation to enhance revenue growth, as well as attracting and developing Gen Y talent.

The Faculty Procurement Roundtable initiated this study to ensure they remained on the leading edge of best practice procurement. Four relevant mega trends emerged, namely sustainability, the changing workforce, advancing technology and emerging markets. The Faculty sought insight from a wide range of experts, including CEOs and CFOs from leading Australian and global companies, Chief Procurement Officers (CPOs), industry practitioners, academics and prominent thought-leaders.  

Key Findings

  • Procurement will continue to hold the prime responsibility for driving global cost competitiveness
  • Supplier performance will not so much be about the contract you negotiate, as it will be the contract you enforce
  • Community concern for the environment will mean that managing the sustainability footprint of the “extended enterprise” will become an additional responsibility for organisations
  • The demand to stay ahead of the competition and the high internal costs of new product development will mean that organisations will look to deliver top line growth through innovation from the supply base
  • Procurement specialists will require not only deep category knowledge, but also commercial acumen, intellect and multidisciplinary.

If companies are to succeed into the future, they must position now for the challenges and risks that will accompany globalisation. Procurement increasingly, must play a frontline role in bringing value to the enterprise and also representing the organisation in growing global jurisdictions. A new approach is necessary to ensure that Procurement is empowered and enabled to make the contribution that will be necessary in this ever-changing environment.

The full Procurement – Into The Future report provides deep analysis, benchmarking and recommendations on the key areas summarised above. To request a full version of the report, please email The Faculty