Viewpoint July 2012


Future Purchasing Viewpoint  
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Jon Hughes

Jon Hughes
Chairman, Future Purchasing

Welcome to the July edition of our FP Viewpoint, in which we encourage you to access the powerful conclusions from our worldwide collaboration project into “next level” procurement transformation resourced by Future Purchasing, Henley Business School University of Reading, DILF, Vantage Partners, Kairos and Archer Mann. This has been a major piece of work over the last eighteen months, with five detailed articles full of case studies and practical frameworks for action designed to guide CPOs and procurement leadership teams in their quest for the next phase of world-class procurement

All the articles are in Knowledge Hub. If you want any additional information, just drop me an email on:

Or telephone:

+44 (0) 7958 763159

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“Next Level” Procurement Conference, Copenhagen, 11th September 2012

If at all possible, please come and participate in the conference I’m chairing in the early Autumn. It will illustrate the conclusions drawn from the “next level” procurement project and closely examine a wide range of practical interventions currently being applied by CPOs in leading companies. Keynote speakers include Steen Karstensen of Maersk, Daniel Helmig of ABB, Patrick Scholler of Alstom and Jean-Philippe Collin of Sanofi.

Unlike some conferences, this will be a highly interactive event designed to encourage active participation and real dialogue between speakers and delegates. I look forward to meeting with you during the event.

“Next Level” Procurement Leadership

Many CPOs have now driven the first wave of procurement transformation into their organisations, with great benefits secured. As always, the board and senior stakeholders want more. The challenge is how to mobilise resources, accelerate momentum and move up to the “next level”.

Without any doubt, building and applying strategic capabilities is critical to addressing that challenge. The fifth and final article produced by the worldwide collaboration team examines how to do this through investment in procurement leadership, best-in-class processes and people.

Reframing Procurement, Part 5: Performance Delivery and Strategic Capability Development

Fifteen critical differentiators of procurement performance are covered, together with a summary of the full toolbox affecting price, cost, value, risk and business structures. However, “next level” procurement cannot be achieved without maintaining investment in high added value competences and team strength, particularly pivotal leaders and procurement change agents. This is illustrated by eight named case studies of organisations which are accelerating, maintaining, losing or have lost momentum. The message is dramatic: in procurement transformation you are either moving forward or going backwards. This is particularly noticeable when progress is assessed over a three-year period. There is no hiding place for CPOs.

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Reframing Procurement & Achieving the Next Level of Performance

Each of the five articles produced by the research team can be easily and freely downloaded. They provide detailed insight and directly address five questions.

  1. What are the key levers in sourcing and supplier value management? Read more here >
  2. How can organisations unlock another 20% of cost down opportunities? Read more here >
  3. What is the value of value in strategic supplier management? Read more here >
  4. How is risk addressed across major categories, suppliers and markets? Read more here >
  5. What is the #1 source of world-class performance in procurement? Read more here >
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