The Procurement Value Proposition: The Rise of Supply Management

by Gerard Chick, Robert Handfield

Overview

The role of the Chief Procurement Officer (CPO) is becoming more strategic and even more important as procurement is affected by technological advances, changing demographics, geo-political and macro-economic change, and an increased focus on sustainability and Corporate Social Responsibility. In The Procurement Value Proposition, Gerard Chick and Robert Handfield consider how these global economic changes will alter purchasing strategies, organizational structure, role and responsibility, system development, and the skills required to work in the profession.

With input, observations and case studies from CPOs, business development professionals, and business leaders, this book is ideal for procurement practitioners who wish to develop a cutting-edge practice.

Product Details

ISBN-13:	9780749471194
Publisher:	Kogan Page, Ltd
Publication date:	12/28/2014
Pages:	288
Product dimensions:	6.00(w) x 9.10(h) x 0.90(d)

About the Author

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.

Table of Contents

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

Editorial Reviews

"[T]akes on some of the most pressing challenges facing procurement today and makes them seem both more comprehensible and realistically addressable."

Buyers Meeting Point - Kelly Barner

"This book helps practitioners and business leaders advance their strategic understanding of how procurement can deliver business value by covering trends including sustainability, technological advances, geopolitical and macroeconomic changes, developments in procurement strategies, and changing business platforms and cultures."

Inbound Logistics - Jason McDowell