?? The Self-Buyer Debate: Can Functions 'Procure Better' Without Procurement?
A Personal Story: When Procurement Became a Barrier to Success
Early in my career as an engineering manager at a Colgate Palmolive Plant, I oversaw utility functions, including steam and wastewater operations, and handled the procurement of chemicals essential to these processes. At the time, I was self-buying these chemicals, managing budgets and KPIs with a strong commercial mindset.
Then, procurement stepped in to take over. Initially, it seemed logical—procurement could secure better deals and enforce compliance. However, what should have been straightforward quickly became bureaucratic. Procurement’s rigid processes overwhelmed me with irrelevant questions, turning a simple operational task into an exhausting ordeal. When they insisted on using e-auctions to meet targets, the process reached peak frustration.
This experience left me questioning whether procurement needs to be involved in every purchasing decision. In this case, procurement’s involvement created more harm than good, with process overshadowing purpose.
When Compliance Overpowers Agility
Procurement’s popularity often suffers due to its focus on compliance and process over flexibility. What had been a simple, value-driven purchase became bogged down by red tape—endless evaluations, exhaustive RFPs, and compliance checks that distracted me from operational needs. The supplier, whom I knew was right for the job, grew frustrated by the drawn-out process. The result? A more expensive deal, strained supplier relations, and an engineering manager now wary of procurement’s involvement.
Procurement often operates with a mindset that stakeholders should have detailed specifications for everything: documented, measured, and monitored so that when procurement steps in, every requirement is clearly defined. But in reality, stakeholders are usually focused on operations and may not have extensive documentation. This mismatch between procurement’s expectations and operational realities often makes procurement collaboration feel burdensome, adding layers of complexity instead of support.
While multiple quotes or formal proposals may be necessary in high-risk or high-spend categories, applying such processes universally leads to delays, frustration, and often higher costs. Stakeholders like IT, Marketing, and HR may avoid procurement altogether, seeing it as a roadblock rather than a value-adding partner. Clearly, a one-size-fits-all procurement model rarely fits all scenarios.
Shifting the Model: Letting Stakeholders Lead in a 'Hybrid Approach'
To remain impactful, procurement should focus where it adds the most value—high-risk, high-spend categories like direct materials or large capital projects. Also, in procurement-managed categories, assigning experts who understand technical nuances can improve outcomes. For example, IT purchases should ideally involve those with IT technical expertise, just as engineering-related procurement should involve those with hands-on knowledge.
In other areas, however, stakeholders who work directly with suppliers and understand specific needs are often best positioned to make purchasing decisions. A 'hybrid model,' where procurement acts as a strategic guide rather than a gatekeeper of every spend, allows stakeholders to lead their own purchases while benefiting from procurement’s expertise.
Empowering Stakeholders with the Right Tools
Empowering stakeholders to self-buy is not about letting them operate unchecked. For this approach to succeed, organizations must equip stakeholders with a structured framework, negotiation training, and digital tools. With the right skills and principles, they can make balanced decisions on cost, quality, and supplier relationships without constantly relying on procurement.
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When properly trained and equipped, stakeholders can make faster, more informed decisions in low-risk categories, reducing bottlenecks and freeing procurement to focus on high-value areas.
Time Is Money: The Hidden Costs of Overprocessing
Procurement’s exhaustive processes come with a hidden cost: time. Stakeholders often know exactly what they need but must navigate procedural hoops, slowing down critical operations. In many cases, the final decision is no better than what the stakeholder could have made independently.
In these categories, the added layers of procurement are simply not worth the time or complexity. Allowing stakeholders to manage their own purchases—while providing guidelines to ensure compliance—can be a more effective approach.
High-Impact Areas: Where Procurement's Focus Should Be
Procurement’s expertise is most valuable in high-risk, high-complexity categories like construction or large-scale investments. Here, procurement can deliver significant value through supplier management, compliance enforcement, and market insight.
Beyond these high-impact areas, procurement can offer a strategic perspective, advising on volume consolidation, cost savings, and best practices. Acting as an enabler rather than a controller, procurement can add value without enforcing compliance in every transaction.
A Flexible Approach: Stepping In 'When Needed'
There are times when procurement’s expertise is necessary for managing complex, cross-functional purchases, such as IT systems involving multiple departments. In these cases, procurement can handle the intricacies, allowing stakeholders to focus on core responsibilities. This flexible approach ensures procurement’s involvement where it is needed while giving stakeholders autonomy in areas where they are best positioned to manage purchases.
Conclusion: The Case for a 'Lighter Touch'
It is time to redefine procurement’s role. Rather than acting as a gatekeeper for every purchase, procurement should shift toward a strategic, advisory role, empowering stakeholders to self-buy in non-critical categories. This lighter-touch approach allows procurement to focus on areas with significant value, savings opportunity, and compliance risks while enabling stakeholders to handle their needs, backed by the right training and digital tools.
Ultimately, procurement’s greatest strength lies in providing strategic oversight, managing high-risk categories, and supporting essential purchases. For the rest, it is time to empower stakeholders as self-buyers, with procurement serving as a trusted advisor rather than a controller.
PROCUREMENT MANAGER
5 个月Very helpful