If benchmarking with international leading companies, procurement is likely to be a function that Chinese companies have the greatest room for improvement, and a function that lacks the professional professional manager reserve.
Generally, the external procurement expenditures of manufacturing enterprises account for more than 50% of their total operating income. Procurement management companies use a lot of facts to prove:
If an enterprise wants to achieve excellent development, procurement management must first achieve excellent development!
But many corporate executives don't look at procurement. A very common phenomenon is:
On the one hand, enterprises have extremely high expectations for the procurement function, which requires low cost, excellent quality, guaranteed delivery by suppliers, and excellent service. On the other hand, the procurement team was not given sufficient authorization, compensation, tool investment and capacity development training.
At the same time, the self-image of procurement needs to be improved. Some procurement departments are more proud of being able to squeeze suppliers. They talk about cost reduction based on the rules of zero-sum games. The reality is that internal related functional departments do not buy it and complain about increasing supply. Quality and service, and the financial department may not necessarily recognize the cost savings calculated by the purchasing department itself; while some other purchasing departments have had a hard time, they can't do it outside to make the supplier obey and cooperate, and internally they are required and stepped Step by step, from time to time become the object of frequent condemnation of internal production interruptions or quality problems. Often there is only hard work but no credit.
These phenomena make us feel very unfortunate, lamenting that companies have not fully tapped the potential of suppliers, and lament the lack of strategic height and scientific methods of purchasing managers, both companies and individuals have suffered heavy costs for this …
In fact, even mature companies in Europe and the United States experienced a similar painful process 20 years ago. Although they have a CPO position in most multinational companies today, they have also worked hard step by step through many purchasing colleagues. And what they have obtained, they use a lot of facts and data to prove that if an enterprise wants to obtain a competitive advantage and to achieve superior development, procurement management must first achieve superior development!
We have assisted many companies in the transformation of procurement strategies and led and participated in a large number of strategic procurement and supplier relationship management projects.
A large number of practices have proved that the company's leadership often realizes the huge contribution of strategic procurement function to improve the sustainable competitiveness of the company only after understanding and analyzing the competitiveness enhancement factors of competitors, and then resolutely promotes strategic procurement reform.
At present, Chinese local enterprises have gradually realized the huge role of strategic procurement in supporting the development strategy of enterprises and have taken implementation actions …