Businesses are going through rapid external and internal organisational changes due to an increased focus on sustainability and corporate responsibility, technological advances, geo-political and macro-economic change, and demographic shifts. If purchasing and supply chain managers are to embrace these challenges they must develop new ways of thinking about supply structures and processes as well as new skills and competencies. The Procurement Value Proposition examines these important changes that will have a profound effect on the way future procurement is carried out. It considers the…mehr
Businesses are going through rapid external and internal organisational changes due to an increased focus on sustainability and corporate responsibility, technological advances, geo-political and macro-economic change, and demographic shifts. If purchasing and supply chain managers are to embrace these challenges they must develop new ways of thinking about supply structures and processes as well as new skills and competencies. The Procurement Value Proposition examines these important changes that will have a profound effect on the way future procurement is carried out. It considers the implications of global economic transformation for procurement set against: changes in business contexts, purchasing strategies, organisational structure, roles and responsibilities, system development and skills required to work in the profession. In this book, Gerard Chick and Robert Handfield discuss the value proposition offered by contemporary procurement to the sustainability and development of business. They examine how organizations that position procurement as a core business function will be able to drive a more competitive lever for change, and more readily adapt to the forces driving rapid change in the current global environment. The Procurement Value Proposition features case studies of companies that are moving through procurement transformation in a continual phase of movement and adaption to the multitude of shifts that are occurring. It features input, observations and case studies from CPO's, Commercial Directors, other Procurement and business leaders. The book considers a variety of geographical contexts and highlights differences between the US, the UK and China. Gerard Chick and Robert Handfield won the Grand Prix ACA-Bruel for their book, The Procurement Value Proposition. Awarded for important contributions to the research and practice in procurement and supply chain management, the book was recognised for its ambitious vision of procurement.
Gerard Chick is Chief Knowledge Officer at Optimum Procurement Group, a procurement outsourcing and consulting company. He is a speaker and writer on business and procurement issues and has written for journals such as CPO Agenda, Supply Management and Procurement Professional. He has been a keynote speaker and delivered workshops on strategic procurement issues to senior executive teams in the UK, the US, Europe, the Middle East, Australia, Africa and China. Until recently, Chick was also a visiting Senior Research Fellow at Curtin University in Perth, Australia, a visiting Fellow at Cranfield School of Management and a member of the Logistics and Operations Management Board of Cardiff Business School. Robert Handfield is the Bank of America University Distinguished Professor of Supply Chain Management at the North Carolina State University Poole College of Management, and director of the Supply Chain Resource Cooperative. Handfield was previously Consulting Editor of the Journal of Operations Management, and he is a widely published author on supply chain management. His books include Supply Market Intelligence (CRC Press), Introduction to Supply Chain Management and Supply Chain Redesign (Pearson Higher Education). He is a leading speaker at executive forums such as the Power Conference at the Institute for Supply Management and the Conference Board. He has consulted with Fortune 500 companies, including Caterpillar, GlaxoSmithKline and FedEx, and he has published more than 100 articles in top management journals, including MIT Sloan Management Review, the Journal of Product Innovation Management, and the Journal of Operations Management.
Inhaltsangabe
Preface Acknowledgements Introduction Structure of the book How to use this book Notes PART A: Foundations and establishment of contemporary procurement 01 What is contemporary procurement? The emergence of procurement as a profession The emergence of procurement as an academic discipline Early developments towards modern procurement Procurement becomes supply (chain) management The dawn of the modern era: procurement as an enabler and value adder Purchasing's legacy Towards procurement's value proposition Case study: Pioneering category management at Ford Motor Company Conclusions Notes 02 Procurement maturity: understanding performance versus value Organizations continue to grow their supply chain global footprint As companies expand globally, so does supply chain complexity Increased globalization brings increased risk of supply disruption Regulatory requirements are a big part of complexity Logistics network redesign and customization Challenges in supply chain and logistics infrastructure Increasing sustainability pressure What does this mean? Can procurement embrace complexity? Defining procurement performance and procurement value Value - the holy grail for procurement If the CEO was to ask you 'how much might that price cost the business' could you answer? The right stuff How should we measure procurement's performance? Looking forward Case study: Motivation for change - Biogen Idec's transformation to world-class supply management Some conclusions Notes 03 From global trends to corporate strategy The key global trends The five game changers External impacts: what procurement must do today and in the future Developing corporate and procurement strategy to meet the challenges Case study: The Footwear material sustainability index Conclusion Notes 04 Five game changers: their impact on procurement and supply management Game changer no. 1: corporate social responsibility (CSR) Game changer no. 2: technological advances Game changer no. 3: globalization Game changer no. 4: demographic changes Game changer no. 5: the shift in the global economic centre of gravity Case study: Tiered supplier partnership and supplier association models Some conclusions Notes 05 Taking a practical approach to improvement: introducing the ACE model What do we aspire to be? Aligning procurement's, value and capabilities Re-evaluating the procurement function From zero to hero: procurement's PR challenge Application of the ACE model: a tool kit for business leaders to implement change The smart things that top-performing procurement organizations do Case study: Becoming a trusted advisor - procurement transformation at a global insurance provider Some conclusions Notes 06 It's all about people: talent acquisition and retention The key issues Evidence of this change Case study: Value orientation through supply entrepreneurship and integrated business processes Different types of talent are needed for different roles Conclusions Notes 07 Cometh the hour cometh the man: realizing procurement's potential by building winning teams A quick refresh Deep 'smarts' are key Brave new world Two big questions Building a winning procurement team Case study: The Thailand issue Some conclusions Notes 08 The dawn of procurement's new value proposition: innovation, collaboration and focus The question of 'best' practice Issues in the management of modern procurement Procurement: why traditional approaches no longer fit Managing for innovation Managing markets Working with complexity The six signposts to procurement's future value Case study: Harnessing the power of supplier innovation Some conclusions Notes 09 The future: from strategic procurement to value procurement The rise of strategic procurement Category management: the heartland of modern professional procurement Category management has to begin and end with stakeholders Influence is critical Value: is it time to reveal procurement's latest game changer? Why value procurement differs from value-based procurement Defining value procurement Value procurement has to begin and end with customers Caveat emptor Taking the view from business to market So how does this change the game? The evolution of procurement's value proposition The CPOS enigma Delivering commercial twist Case study A: Getting over the category management model Case study B: Honda of America's emphasis on strategic cost management permeates every part of its business Some conclusions Notes 10 Reflections and conclusions Reflections Back to the five game changers Reflections on the five game changers from a procurement perspective Reflections on the consequences of procurement maturity and its value to business Attracting and retaining the best and the brightest procurement talent We are entering the era of the bimodal procurement professional Why risk has become the number one issue Procurement relationships in China Procurement must drive productivity to generate value for the business it serves Overcoming the barriers to value creation To conclude Notes Part B: Innovation debates: creating your own value from procurement 11 Introduction to innovation debates Event styles The innovation debates Notes References Further reading Index
Preface Acknowledgements Introduction Structure of the book How to use this book Notes PART A: Foundations and establishment of contemporary procurement 01 What is contemporary procurement? The emergence of procurement as a profession The emergence of procurement as an academic discipline Early developments towards modern procurement Procurement becomes supply (chain) management The dawn of the modern era: procurement as an enabler and value adder Purchasing's legacy Towards procurement's value proposition Case study: Pioneering category management at Ford Motor Company Conclusions Notes 02 Procurement maturity: understanding performance versus value Organizations continue to grow their supply chain global footprint As companies expand globally, so does supply chain complexity Increased globalization brings increased risk of supply disruption Regulatory requirements are a big part of complexity Logistics network redesign and customization Challenges in supply chain and logistics infrastructure Increasing sustainability pressure What does this mean? Can procurement embrace complexity? Defining procurement performance and procurement value Value - the holy grail for procurement If the CEO was to ask you 'how much might that price cost the business' could you answer? The right stuff How should we measure procurement's performance? Looking forward Case study: Motivation for change - Biogen Idec's transformation to world-class supply management Some conclusions Notes 03 From global trends to corporate strategy The key global trends The five game changers External impacts: what procurement must do today and in the future Developing corporate and procurement strategy to meet the challenges Case study: The Footwear material sustainability index Conclusion Notes 04 Five game changers: their impact on procurement and supply management Game changer no. 1: corporate social responsibility (CSR) Game changer no. 2: technological advances Game changer no. 3: globalization Game changer no. 4: demographic changes Game changer no. 5: the shift in the global economic centre of gravity Case study: Tiered supplier partnership and supplier association models Some conclusions Notes 05 Taking a practical approach to improvement: introducing the ACE model What do we aspire to be? Aligning procurement's, value and capabilities Re-evaluating the procurement function From zero to hero: procurement's PR challenge Application of the ACE model: a tool kit for business leaders to implement change The smart things that top-performing procurement organizations do Case study: Becoming a trusted advisor - procurement transformation at a global insurance provider Some conclusions Notes 06 It's all about people: talent acquisition and retention The key issues Evidence of this change Case study: Value orientation through supply entrepreneurship and integrated business processes Different types of talent are needed for different roles Conclusions Notes 07 Cometh the hour cometh the man: realizing procurement's potential by building winning teams A quick refresh Deep 'smarts' are key Brave new world Two big questions Building a winning procurement team Case study: The Thailand issue Some conclusions Notes 08 The dawn of procurement's new value proposition: innovation, collaboration and focus The question of 'best' practice Issues in the management of modern procurement Procurement: why traditional approaches no longer fit Managing for innovation Managing markets Working with complexity The six signposts to procurement's future value Case study: Harnessing the power of supplier innovation Some conclusions Notes 09 The future: from strategic procurement to value procurement The rise of strategic procurement Category management: the heartland of modern professional procurement Category management has to begin and end with stakeholders Influence is critical Value: is it time to reveal procurement's latest game changer? Why value procurement differs from value-based procurement Defining value procurement Value procurement has to begin and end with customers Caveat emptor Taking the view from business to market So how does this change the game? The evolution of procurement's value proposition The CPOS enigma Delivering commercial twist Case study A: Getting over the category management model Case study B: Honda of America's emphasis on strategic cost management permeates every part of its business Some conclusions Notes 10 Reflections and conclusions Reflections Back to the five game changers Reflections on the five game changers from a procurement perspective Reflections on the consequences of procurement maturity and its value to business Attracting and retaining the best and the brightest procurement talent We are entering the era of the bimodal procurement professional Why risk has become the number one issue Procurement relationships in China Procurement must drive productivity to generate value for the business it serves Overcoming the barriers to value creation To conclude Notes Part B: Innovation debates: creating your own value from procurement 11 Introduction to innovation debates Event styles The innovation debates Notes References Further reading Index
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