By: Frances Talman | 12 May 2017
Running a procurement process to purchase goods, services, or to outsource in-house services is often complex and time consuming and can redefine your relationship with your suppliers. If not done correctly it can be detrimental to your business having the opposite effect of what you had planned.
There are several areas Chief Procurement Officers (CPOs) have identified that are driving the need to review and re-model strategies and outcomes. These include:
- The widening of the talent gap, with CPOs increasingly feeling the internal team lack the skills needed to deliver their business strategy – 62% in 2016 compared to 48% two years ago
- Emerging technologies are presenting opportunities for improved value creation and better transactional efficiency
- Consolidating spend
- Increasing level of supplier collaboration
- Restructuring existing supplier relationships
Source: The Deloitte Global CPO Survey 2016
These challenges present opportunities but also pitfalls if not managed correctly. Having access to the right skills and talent at the appropriate time to develop and deliver your procurement strategy is a key to executing successful purchasing. However over the past five years there has been a decrease, in real terms, of investment in talent. This lack of investment has exposed a real risk to businesses that are trying to manage highly complex purchasing activities with insufficiently experienced people who lack the necessary skills or have knowledge gaps. With processes, tools and the supplier landscape continually evolving and the knowledge gap widening it leaves many businesses exposed.
The challenge for businesses is how to bridge the talent gap and to ensure that you have the right expertise to develop and deliver your strategy when you need it and only at that point?
- Do you invest in more staff – increase your headcount?
- Do you upskill your teams through investing in training and knowledge transfer?
This still may leave your business exposed to risk factors; particularly if training and knowledge transfer fails to deliver, or your top talent leaves your organisation.
This is where eXceeding can help. Our consultants have access to best-in-breed tools and techniques and industry best-practices. They have extensive experience delivering services and expertise to clients across a broad range of sectors that includes large corporates, SMEs and public sector bodies. Our team of consultants coupled with an agile and flexible approach to resourcing can help your organisation through being an extension to your in-house team, or by replacing specific team roles. Using this approach your risk exposure is reduced, internal headcount optimised by having immediate access to leading industry professionals and internal staff gain knowledge transfer. This degree of flexibility enables your business to react to urgent need as well as short-term acute resource shortages.
eXceeding has the skills and experience to deliver purchasing, or outsourcing objectives; whether it is developing processes, training or augmenting your teams we have a track-record of satisfied clients and delivering the most competitive life-cycle cost solutions.
Our completely impartial advice has helped clients improve their operations whilst reducing costs by:…[Read More]