Improving competitive advantage through procurement excellence
Like other strategic functions in the enterprise, procurement’s role continues to evolve. From 2008 to 2012, many companies looked to procurement to help facilitate aggressive cost-cutting targets necessitated by a global economic downturn. As economic realities continue to shift, the procurement function must again adjust. To understand what actions and decisions have led to success in the past, and to derive insights on what responses might work best in the future, the IBM Institute for Business Value surveyed 1,128 CPOs from organizations with annual revenue in excess of US$1 billion.
Through this research, IBM discovered three key points of differentiation that separate high-performing procurement organizations from the pack:
- Effective delivery of traditional procurement capabilities
- Influence within the enterprise over purchasing and strategic decisions
- Identification of innovative ideas from a diverse range of inputs.
Top performing procurement organizations have succeeded in developing and maintaining all three of the important traits. They exhibit strong capabilities, are seen as influential contributors to their business and focus on introducing innovation.
The IBM Institute for Business Value executive report, “Chief Procurement Officer Study: Improving competitive advantage through procurement excellence” examines the practices of those select few procurement organizations that have developed and mastered the capabilities, influence and innovation that enable them to contribute to the competitive advantage of their enterprises. The report looks at what separates outperformers from the rank-and-file organizations that fall short. And, finally, the report provides a roadmap that CPOs can follow that will enable them to begin emulating the practices of outperformers to positively impact the competitive position of their organizations.
To learn more, download: IBM Institute for Business Value executive report