Traditional Purchasing organizations and jobs will transform more
in the next 5 years than the previous 100 years The changes are beyond
recent developments of:
However, even with the coming changes the is not necessarily an expensive implementation cost for software, consultants, hardware etc... As a result Fortune 100 companies do not have any real advantage in responding to changes to gain a competitive advantage over small to mid-sized companies. In fact because of the massive investment in enterprise solutions and processes they maybe at a disadvantage.
Before discussing the changes and what Purchasing and Supply people should do to prepare lets talk about what you should forget.
So what will change in the next couple of years and what do you need to start thinking about?
Becoming a deep subject matter expert Commodity Manager will be a high reward job. In fact better for 2 subject categories.
Once the transition is complete what will you then need to thrive?
- Globalization,
- LCC Sourcing,
- Introduction of operational systems (SAP, Oracle),
- Introduction of new tools (tablets, smart phones.
However, even with the coming changes the is not necessarily an expensive implementation cost for software, consultants, hardware etc... As a result Fortune 100 companies do not have any real advantage in responding to changes to gain a competitive advantage over small to mid-sized companies. In fact because of the massive investment in enterprise solutions and processes they maybe at a disadvantage.
Before discussing the changes and what Purchasing and Supply people should do to prepare lets talk about what you should forget.
- Being an expert with excel, access, worksheets etc.
- Focus on cost savings.
- Purchasing centric individual quantitative measures of how many transactions and how fast.
- Blaming other departments for inability to deliver better results
- You must sit at your desk and process transaction. (Better to get rid of your desk altogether)
So what will change in the next couple of years and what do you need to start thinking about?
- Everything becomes a commodity
- Syndicated Commerce World class tools and supply chains are available for all sizes of organizations at essential no cost Everyone is a Buyer and Seller Purchasing contributes directly to revenue generation as well as cost saving
- Big Data will: Smooth planning cycles - end of "Bullwhip Effect" Create relevance to offers to Buyers that create more specific value
- Creating a better Purchasing customer experience will be key to drive value
- Procure to pay operations will be totally automated.
- The word foreign is losing its meaning (Borrowed from United Airlines)
Becoming a deep subject matter expert Commodity Manager will be a high reward job. In fact better for 2 subject categories.
Once the transition is complete what will you then need to thrive?
- Much more Strategic view with ability to contribute directly to revenue generation
- Strong IT understanding on a systems level with ability to deliver systems that match "internal customers needs.
- Truly global view and experience
- Soft Skills more important