Source One Helps Procurement get a seat at the table
As sourcing and supply chain roles are shifting from tactical to strategic, there is a need for procurement functions to have clearly defined roles—and the CPO seat is certainly not excluded from the rule. During their time at the ProcureCon Indirect East Conference 2015 in Florida, Source One executives William Dorn and Steven Belli added their perspectives on the struggles encountered by procurement professionals. The conference agenda established that, “One way to do this is to insert yourself into the conversation and ensure that there is alignment of the enterprise’s cultural appetite and the collective capabilities procurement needs to bring to deliver sustainable value.”
As Jon Hansen mentioned in a Procurify Blog, “The mindset of procurement professionals has to expand beyond the traditional view of the profession.” This is true of Marketing, HR, and other functions that are a backbone of operations, but not the actual core business practice. Hansen also points out that “only 20% of CFOs feel the CPOs, and their departments, offer any value, from a competitive standpoint, for the company.” The same way that procurement as a whole can feel “unprioritized” within a company, indirect procurement feels inferior to direct procurement.
The important thing to keep in mind here is the difference between perception and reality. The reality is that both direct and indirect procurement play a critical role in supporting the organization’s bottom line. However, this does not mean you can manage them the same way. Source One’s strategic sourcing experts can not only steer you in the right direction, but show you how to apply the gas and brakes at the right times.