A very insightful and commendable piece, Graham. You raise a vital topic that’s critical to most Procurement functions, as I’ve highlighted in a number of previous articles.
Importantly, the requirement to educate the wider business should revolve around shifting from a “cost savings” mentality to a “value-for-money” mindset, where “value” exceeds financial benefits. In my new book, Procurement Mojo®: Strengthening the Function and Raising Its Profile, I cite the example of one international retailer touting the artisanal attributes of one of their suppliers in their TV adverts. It’s a great example of leveraging a supply base created by Procurement for corporate advantage beyond “savings”.
But educating the wider enterprise must be part of a broader, cohesive effort at building a credible Procurement brand, a fundamental aspect of enhancing Procurement effectiveness.
In my experience of revamping Procurement functions, this is foundational to embedding Procurement in the fabric of the wider enterprise as a “true business partner” function, second only to the need to boost functional capability.
It requires us in the trade to jettison our conventional perspectives and embrace more strategic thinking about the Procurement job. We must become more organizationally savvy, and place more focus on repositioning Procurement in stakeholder’s perceptions and exploiting smart PR.
I often urge Procurement practitioners to ponder this question deeply: “How do my key stakeholders perceive me and my Procurement function today?”
Procurement’s position and branding as a strategic partner is far more dependent on stakeholder perceptions than anything else. So Procurement folks could do a lot worse than understanding that perception, and then taking the right actions to influence it positively.
