What is Procurement’s Place in the Value Chain?

Guest Post by: Supply Chain Game Changer.

Where does Procurement stand in your organization’s Value Chain?

Hopefully, you’ll be able to formulate an answer to that question after reading this post.

I speak with Procurement, Sourcing and Purchasing professionals every day, from various globally functioning organizations, and there’s a resounding similarity in every one of those conversations…

Procurement is — still — largely viewed as a secondary activity in most organizations’ value chains.

How is it possible, that a function serving as one of the greatest creators of sustainability and quality management in the line, cost-based savings, and allocators of the majority of direct spend, can be devalued to solely a supporting role in the value chain?

Simple answer: Traditional C-Suites don’t typically see procurement as a profit-creator or market differentiator, but rather a capital saver and money spender.