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The politics of procurement Bill Morrissey and Derek Thomason of Miebach Logistics argue that the role of purchasing/procurement in developing the ‘external’ supply chain has yet to be fully exploited. |
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Much of what has been written about supply chain management over recent years has focused on cutting out waste (primarily in manufacturing, warehousing and distribution) and redesigning ‘internal’ processes. But the role of purchasing/procurement in developing the ‘external’ supply chain has yet to be fully exploited. Furthermore, many years of experience both as practitioners and lecturers convince us that education and training isn’t enough when building inter-company, win/win partnerships. It is not unusual to find organisations spending in excess of 50% of their turnover with third-party suppliers for goods and services. Further investigation reveals that a disproportionate amount of ‘resource’ is being used in making these acquisitions. Yet despite all this effort, the capabilities of the supplier base are not fully exploited. In recent years a superficially impressive array of tools and techniques has been developed to assist organisations in exploiting this untapped resource, and therefore ‘adding value’ through supply chain activities. These techniques are being taught to CIPS and logistics students, raising the skills and competence levels of the profession. Even so, hundreds of organisations fail to realise the full potential and are underperforming in supply chain and purchasing disciplines. |
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International Consultants' Guide September 2001
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Collaborative Supply Chain