The below mentioned is about the longest text you will encounter on this website, but it will enable you to better understand its driving forces, objectives and potentials.
We believe a new generation of procurement professionals are standing up. They see no reason why they should spend two hours or more per day in traffic to arrive in the office and then … open their laptop and type their fingers on the keyboard ! An activity which takes about 4 working hours a day and which they actually can do from any place in the world.
We also see an ever increasing amount of procurement professionals abandoning the employee status in favor of the independency status. There are merely two main reasons for this. First, more and more procurement professionals want to work on what “they can do best” and on what “they want to do” rather than on what “they have to do”. Secondly, more and more of us do prefer to build up their own pension fund rather than to rely on banks and institutions, the latter having demonstrated their failure to comply in the current financial crisis.
We believe also procurement professionals care about our environment and that they can make their contribution to our green world by travelling only when this is really necessary. Our current travelling scheme is still very much based on our past tools. Today’s internet tools enable us to talk, meet and now with this website also source, bench and procure via the internet. By the latter, we do not mean a simple tool. We are talking of a new way of procurement.
We believe the market situation will drastically change in the next coming months and years and it will drastically challenge at the same time the procurement professionals whether we are talking about the buyer up to the CPO. Today’s procurement world has nothing to do with the one we are heading to. Sales are stagnating on a worldwide scale. So, more and more owners, directors and managers understand that the only way to increase their margin is via the spending optimization. At the same time, also the sales people have the margin challenge as the turnover targets cannot be met. An increased tension will appear between suppliers and their customers. An ever increasing pressure will push procurement professionals to generate cost optimization on their major spend by doing different things than “tender-like approaches” and “lemon pressing”. Most of us have already reached the lowest possible level on their procurement prices. Obviously, nobody of us has been standing still all those years. Thus, the only way to further optimize the procurement is to extend the collaboration of procurement people beyond the boundaries of their current working relationships.
Some of the suppliers will go bankrupt in the next couple of 12 months. Do you know which one? It might well be the most promising one with the best quality, the best machinery investment and the best partnership approach. The current market cash liquidity restrictions might destroy the most promising of our suppliers. A simple financial credit report will not help you anymore. Do you know how you will solve the issue once it will pop up?
We believe that also on their minor spend the procurement professionals will have major challenges. Most of us do not have an unlimited amount of available working time. So, for time reasons or restricted budget reasons, we have not always the physical possibility to spend the required time on this smaller spend. In future, not only we will be forced to focus also on the minor spend to the same extend as the major spend, but additionally we will have to do it with … lesser people in our procurement department.
Remember the time that you spent the first time you needed to understand the market and supplier base and compare this with the amount of time that you needed once that you got this experience on board.
A new procurement landscape is shaping itself as we speak and you rather be prepared to adapt to it.
To BRIDGE THE TIME AND PEOPLE GAP is what this website is all about.
To have a view on what this website can do for you, please have a look at the Chapter "You want".