Following on from our recent Harvard Business Review coverage, we’d like to invite you to join us for an online panel session – discussing practical perspectives and pragmatic insights into the trend of Corporate Virtualization.
This one hour discussion will offer four fundamental areas that need to be addressed and resolved by corporate management to bring the procurement operation closer to the heart of the business; claiming its rightful place as a valued, commercial asset.
When asked to identify the most strategic and highest-valued components of a corporation, the procurement department rarely comes to mind.
The term itself has a very administrative connotation, associated with buying ‘stuff.’ It has been a long-held belief that procurement is responsible for negotiating cheaper deals and seeking the lowest possible price point.
That may have been well and good under the ‘old-guard’ corporate structure, where organizations consisted of little more than supplies and employees. But the construct of today’s ‘virtual corporation’ has changed dramatically.
Recent research of 2,000 global companies found that supplier/external costs typically account for 70% of revenues, while labor costs only account for 12.5%.
These findings suggest that suppliers today must be viewed as an extension of the company. How well they perform has a significant impact on a business’ overall performance. They must be thought of, and managed, in similar fashion to the internal labor force – they need to be encouraged, targeted, incentivized, sanctioned, coached, rewarded and motivated to help achieve corporate objectives. Corporate Virtualization has profound implications on suppliers and the department responsible for their management: procurement.
But while the game has changed, the players, unfortunately, have not. Nor has procurement registered on the radar of the C-Suite in a manner proportionate to its growing importance within the organization.
During this one hour live panel discussion you will learn:
- What’s possible: Hear about the transformative role procurement can play, but doesn’t for most – and how to assess the role it plays in your organization today;
- How to measure performance: You get what you measure, so measure the right things (and here’s a clue – it’s not savings);
- How to change perceptions: How to adjust long-held views of the function.