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How Are Purchasing & Sourcing Different Today?
>
> The new year"s arrival made me ponder how purchasing in 2008
> differs from purchasing in 1998. Here are the top 10
> purchasing changes in those 10 years.
>
> 10. Technology Proliferated. Today, eProcurement and
> eSourcing are two of the most useful practices in
> purchasing. Ten years ago, those terms were unheard of.
>
> 9. Center-Led Procurement Arrived. In 1998, even top
> purchasing departments processed purchase orders. Today,
> purchasing departments aim to centralize the supplier
> selection process, not transactions, which are delegated
> to end users or outsourced.
>
> 8. Purchasing Grabbed More Spend. When purchasing
> departments deliver results, management seeks more spend
> that Purchasing can positively impact. Once sourced by
> other departments, categories like fleet management,
> benefits, and travel services are now sourced by
> Purchasing.
>
> 7. Social Responsibility Became A Top Priority. Whether for
> philanthropy or to avoid media scandals, management counts
> on Purchasing more than ever to buy from diverse
> suppliers, make environmentally-conscious decisions, and
> do business ethically.
>
> 6. Measurement Was Mandated. With the potential of smart
> purchasing widely known, senior management more strictly
> holds their purchasing departments accountable for
> results. The use of purchasing metrics and dashboards is
> now commonplace.
>
> 5. Strategic Sourcing Went DIY. In the "90"s, strategic
> sourcing was done mostly by consulting firms hired to
> help companies reduce spend. Today, many companies have
> their own refined and documented in-house strategic
> sourcing processes.
>
> 4. Supplier Roles Expanded. In 1998, there was talk about
> "partnering" with suppliers. Today, there"s action. Top
> purchasing departments actively develop their suppliers
> and look to the supply base for ideas, better performance,
> and innovation.
>
> 3. Global Sourcing Went Mainstream. Ten years ago, only the
> progressive companies were searching abroad for suppliers.
> Now, in some countries, it is difficult to find products
> manufactured domestically.
>
> 2. The CPO Position Got Adopted. This past year alone, I"ve
> encountered an unprecedented number of folks with the
> title "Chief Procurement Officer."
>
> 1. The Supply Chain Was Recognized. In the last decade,
> companies more closely analyzed the way material flows
> into, through, and out of the organization. This
> "supply chain" focus has those who once just placed orders
> now responsible for inventory, warehousing, outbound
> logistics, and distribution.