Thursday, 9 January 2014

2014 Procurement Predictions (Part 2)

Authored by Mickey North Rizza
In my last post I started off my 2014 procurement predictions with:

1. In 2014 Procurement will start reporting all monetary results in financial statement acceptable terms. Additionally, standard financial reporting terms and methodologies integrated into the overall business financial statements will become common practice for leading Procurement teams by 2016.

2.  Procurement transformation efforts in 2014 will uncover financial opportunities that will strongly impact the business financials positively, uncovering untapped potential for years to come.

Now for part 2 we'll begin with procurement alignment and integration.

3. Procurement alignment and integration to the business strategy and plan are critical precursors to delivering value. Customers, stakeholder and suppliers depend upon the execution of a well thought out plan. Businesses must align and integrate the functions/disciplines and value chains to make a difference.

The Prediction: In 2014 Procurement will start to understand the misalignment issues within their function, across the enterprise and in the value chain. The misalignments uncovered will be the beginnings of transformation plans and ultimately deliver greater value faster.

4. Suppliers are a business value opportunity. Of course, the suppliers must be treated as respected and trusted partners so the opportunities are uncovered.

The Prediction: During 2014, Procurement will move beyond mere awareness of collaboration to the practice of collaborating with suppliers, thereby enhancing value creation, innovation and greater value contribution to revenue and profitability.

What are your predictions for 2014? We'd love to hear them!

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