Purchasing functions: Hulky and Decrepit v/s Right sized and Healthy
As I meet more and more clients/prospects (CPOs, Purchasing Directors, Managers, Buyers) during sales, services delivery, service review etc.; I see two common issue categories bothering them in their function - hulky and decrepit issues. Some will complain having too many people (and also ones from old school not having modern purchasing skills) while some will say the same about procurement applications. Some will say we need to modernize, make things slim, fitter etc. to a degree which makes us best in class. You analyze all the issues a bitand you bet, you can classify them into these two issue buckets.
So what is the solution ? Simple. Make all these worrying infrastructure elements which constitute procurement department (people, organization, delivery model, processes, knowledge etc.) right sized and healthy. A right business process management partner can help to identify, prioritize and put up a plan to achieve such end state. The art of possible is simply loaded with too many choices. The choice really lies with the purchasing fraternity to take these challenges head on and take advantage of supply base capabilities as opportunities to modernize. Taking the first step is most important i.e. call few procurement services providers right now to gauge what all is possible, what has been done with other clients etc.
What do you think ? Get me your views by commenting, which I am sure you will.