The practices of the world's leading companies reveal no consensus on the best way to organise purchasing. Whichever operating model you choose, a purchasing function looking to help the entire company to grow should look beyond cost savings. Organisations that produce higher returns focus on:
- Execution culture—the ability to get things done
- Purchasing capabilities—global supply base leverage, cost modeling and negotiation
- Individual competencies—abilities, attitudes and attributes of the individuals within the group
We were delighted to discuss this topic over breakfast with a select group of industry senior executives. We explored the importance of a careful analysis and plan that will drive sustainable improvement to allow their companies to reap the full value potential of purchasing.
Strategy& Partner Detlef Schwarting presented his recent thinking before opening up the discussion, to hear a variety of viewpoints from the group.