Is procurement getting better?
There were traces of procurement in 3000BC with some bit of materials management that was needed during construction of Egyptian pyramids. There is no need to go that far but a look at the last 20 years will help answer this question.
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Twenty years ago, I could see procurement function (it was called purchasing) being thrown to any person in the organization so long as they could write and count. Procurement was more of a clerical role than a strategic role.
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During this time Diploma in purchasing was among the most common qualification. There was little interest in professional qualification.
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In passage of time, we have seen more people get interested in gaining procurement skills and getting professional qualification. With these skills like CIPS many people today have qualifications that are well respected among colleagues and across industries.
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As a result, CPOs and other procurement practitioners have a seat in managerial table and we have seen many rising to be CEOs in organizations. There is alignment Between Procurement leaders and entire organization in budgetary process, strategic planning and policy making.
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These days we don’t just look at procurement processes within our organization, we also looking at our suppliers’ suppliers and our customers’ customers. We call it supply chain management.
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Looking through the entire supply chain has really helped with efficiency in sourcing, quality products, sustainability and ethical buying.
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This is all made possible with data, analytics and better communication. Thanks to ICT.
This data is available because of improved procurement solutions. Think of eProcurement solutions, category management, Supplier Relations Management (SRM), Warehouse solutions, Source2pay, punch out catalogues and all ICT goodies available to procurement and supply chain professionals.
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Just by looking at short 20 years, we all agree there is more to be done but procurement is getting better. Always thankful to people making positive impact.