PROCUREMENT AND CHANGE

1) The challenge to manage escalating costs in purchasing goods

and services
2) The public sector focus on driving out inefficiencies in public
expenditure
3) The increasing trend to outsource manufacture and services
4) The recognition that procurement is a significant contributor to
corporate efficiency
5) The positive impact of global sourcing
6) The enhanced use of information technology and e-
procurement
7) The redressing of procurement power
8) The challenge to outdated traditional practices
 12 characteristics of world-class
procurement
It is characterized by continual and rapid improvement.
1) Commitment to total quality management (TQM)
2) Commitment in just-in-time (JIT)
3) Commitment to total cycle time reduction
4) Long-range strategic plan
5) Supplier relationship
6) Strategic cost management
7) Performance measurement
8) Training and professional development
9) Service excellence
10) Corporate social responsibility
11) Learning
12) Management and leadership
by CENTER FOR ADVANCED PROCUREMENT STUDIES
 Major activities associated with
procurement in the early 2000
• Total cost analysis
• Negotiation strategies and techniques
• Supplier/partner management
• Ethical conduct
• Supplier evaluation
• Quality techniques
• Procurement strategy and planning
• Price/cost analysis
• Electronic data interchange
• Interpersonal communication
 Early skills necessary to carry out
procurement activities
1) Strategic skills
Strategic thinking
Supply base research
Structural supplier relationship
Technology planning
Supplier cost targeting
 Early skills necessary to carry out
procurement activities cont…
2) Behavioural skills
Interpersonal/communication
Risk-taking/entrepreneurship
Creativity
Inquisitiveness
3) Quantitative skills
Computational
Technical
Blueprint reading
Specification development
 Procurement skills need in the
future
• Facilitating – that is, team leadership and providing
the “proper blending and use of all necessary skills”
• Contract negotiating and developing – that is
procurement people – this will still be required – to
write and negotiate advantageous contracts for the
organisation
• Technical expertise – that is, the challenges of
procurement on the Net and funding products in
the world of cyberspace as well as other EDI tasks.