Approximately 70% of all manufacturing companies’ revenue is spent with third party suppliers. The importance of the strategic management of that spend, across the entire purchasing lifecycle, cannot be overstated in terms of its impact on an organization’s financial success.
But despite that imperative, do we, as purchasing leaders and professionals, have a seat at the big table? In the course of our daily discussions with clients and prospects, we hear many manufacturing CPO’s explain that in the past they were struggling to gain influence with the c-suite – but due to Covid and other supply chain factors there has been a recognizable shift and its placing purchasing leaders squarely in the inner circle of executive level discussions.
It is important to recognize that while the supply chain issues are getting us into the c-suite, a strategy for long term supply chain resiliency will keep us there…and now is the time to strike.
Purchasing leaders are using this as an opportunity to look at the way purchasing departments work and building a strategy to transform their organizations with tools that support predictive pricing, Artificial Intelligence, machine learning and other advancements in the digital world. But they are not seeking quantum leaps in transformation, rather they are opting for small incremental steps that deliver immediate value to the company.
If you are interested in understanding more, please contact me or if you would like to view a recently recorded webinar on this topic, please click here: A Strategy to Evolve Digital Transformation in Purchasing.