What Companies Provide the Best Procurement Alumni Credential? Which companies are considered the best in the procurement market, not just in terms of their current talent bench, but also in terms of the alumni they produce? And which companies are currently building a strong alumni base for the future of procurement? In technology, the best companies to be from (regarding the reputation of alumni talent, not to mention the network they provide) are often relatively short-lived. Here are my nominees for tech: Winner: FreeMarkets (yes, I’m biased, but what a group, including David McCormick). Collectively, we’ve contributed to creating at least $20B in shareholder and investor value since “graduating,” by my calculations. And it's spread across hundreds of people who created it. Not bad! Sam Kinney and Glen Meakem knew how to recruit the very, very best and spot talent earlier in a career (as did the late Trip Levis, who led the talent function). Honorable mentions: Coupa Software (watch what happens in the coming years -- it may overtake FMKT) and SAP Ariba. Who might be the next one? I'd undoubtedly place some of my chips on Zip (nice, rhyme, eh?), which is becoming a talent magnet. And for consulting: Winner: McKinsey & Company?(which invented strategic sourcing!) Honorable mentions: Accenture, Arthur Andersen, Kearney, Deloitte, KPMG US and PwC (and increasingly Boston Consulting Group (BCG) and Bain & Company, too). I won’t add Insight Sourcing (Accenture) or Efficio to this list yet, because so few people leave!? And for Corporates / Practitioners: I won’t declare a winner here, but these are definitely in my top ten: Procter & Gamble (P&G),?Walmart, Unilever, ExxonMobil and A.P. Moller - Maersk. Who am I missing in each category? #procurement #talent #supplychain
Broad agreement on your thoughts but I might question putting McKinsey over a Kearney in the consulting category. I appreciate I might be biased as a Kearney alum but I’d suggest two (unscientific) personal perspectives. First, while I can’t say who invented sourcing, I do know that Kearney blazed trails here in the early 90s onwards. It was, per market consensus, THE firm in the space. As I understand it, McKinsey made its investments a bit later. Second, in the last 20 years as we built The Smart Cube’s procurement business, I’m fairly sure I saw more Kearney alumni across various corporate levels than most other firms. Again, just my perspective! ??
If you are interested in the current state of the art of e-sourcing, you should read Jacob Gorm Larsen's recent book called "A Practical Guide to E-Auctions for Procurement." Jacob is a fantastic executive and person. He currently leads E-Sourcing at Maersk, which is mentioned above as a top practitioner. Of course, you can purchase Jacob's book on Amazon.
Corporates (particularly for direct materials / supply chain): Apple Jeff Williams has built an incredible supply-chain team during his long tenure there, and it’s one of Apple’s secret (or not so secret) weapons. But the people on that team are very loyal (and well paid) so not so many alumni, relative to its size, particularly at the higher levels.
Here are a few of the corporates I have covered over the years that were listed in a recent 2024 Gartner report. Cisco (ranked #2) – first post: Is Cisco Really Driving 21st Century Supply Chain Innovation? (December 3rd, 2007) Colgate-Palmolive (ranked #3) – first post: 1998 to 2007 to 2024 DND, Virginia and Colgate-Palmolive’s Timeless Formula For Digital Procurement Success (February 7th, 2024) Microsoft (ranked #4) – first post: Microsoft Acquires SAP? (A Commentary) (December 5th, 2007) Johnson & Johnson (ranked #5) – first post: Pharma Supply Chains (Part 1): A problem of focus versus avarice? (October 11th, 2011) Other companies I have tracked over the past seventeen years include Danone and The HEINEKEN Company.
I would add Gibson Consulting to the honorable mention list. At it’s peak they had between 150-200 consultants focused solely on Strategic Sourcing and more specifically on Direct Materials. It has spun off dozens of boutique firms and CPO’s. There isn’t anyone that I know of that is still selling $20-$40m strategic sourcing projects like Wes Gibson. And not once or twice but over a dozen projects that size. In my mind, Wes will always be the king of Strategic Sourcing.
Selecting Efficio as one of the top companies as a Leading Procurement Consulting Company. Efficio is a leading procurement consulting company recognized for its exceptional alumni who excel across industries, underscoring the firm’s top-tier training and development. With a reputation for delivering comprehensive procurement and supply chain services, Efficio leverages innovative technology and data analytics to drive significant cost savings and efficiency improvements. Their global reach, combined with local expertise, enables them to support multinational clients effectively. Efficio's commitment to sustainability, thought leadership, and client success solidifies its standing as a premier choice in the procurement market. “From a real experience”
Another shout out for ICG/Procurian here, and on the practitioner side, certainly in Europe, Ford Motor Company.
Completely agree about FMKT. I was only around for 1 year but the talent and culture was self evident. The post FMKT exit career paths of so many, not just execs, has fulfilled and confirmed the legacy of the culture. Jason Busch , Joe Juliano , David McCormick, Kevin Kerby, James Arra, Jaime A. Smith and so many others have gone on to achieve greats things.
Ariba V1. Littany of executives and founders still in the space. Some got out of procurement and did little things like advise presidents and develop iOS. Those people also created cXML. Impact has been immense.
This sparked an interview with Sam Kinney today: https://www.dhirubhai.net/pulse/interview-freemarkets-co-founder-mckinsey-alum-sam-kinney-jason-busch-m8rnf/?trackingId=YGVOphv1RRSlp6hR0LRYVQ%3D%3D