Thursday, February 23, 2012
Edition 33 (Jul 2011)
PREVIOUS EDITIONS
David Rae, Editor
At the end of May, hundreds of senior procurement executives gathered in London to celebrate excellence in sourcing and supply chain at the Procurement Leaders Awards. I won't dwell on the results, as a full supplement is included with this issue, but the many discussions I had there confirmed that executives need independent verification of their work.
Of course, this makes sense - excellence in any field is relative and a 15% discount is only a good result until your closest competitor achieves a 16% discount. CPOs need an efficient, truthful and effective method of benchmarking performance against the competition. And here, a number of different methods come into play.
First, awards like ours are crucial, because they are independently judged by a panel of peers who know the challenges a typical CPO faces. A second approach is to engage with firms such as Hackett and AT Kearney. A third is to speak to suppliers themselves. Only by engaging in all three activities will executives get a true picture of where they stand.
At a recent Unilever supplier conference I attended, one of the most thought-provoking slides displayed by CPO Marc Engel was a radar chart showing ratings of the relationship his organisation enjoyed with key suppliers, compared to a group of peers. I won't go into the findings of that chart, but it was an honest assessment which will have provided invaluable insight for Engel and his team.
The fact is that CPOs must excel on many different levels - they must minimise third-party spend, maintain quality levels, ensure continuity of supply, and get the right stuff to the right place at the right time. They must also make sure that suppliers come to them first with their latest innovations.
Finding out how your organisation really measures up is the first step towards true excellence.
This issue really is the awards issue. Along with the included supplement which showcases all of the winner's from this year's Procurement Leaders Awards, Procurement Leaders Network managing director Alex Martinez has recently been crowned a Publisher of the Year at the PPA Awards 2011 in London.
The award recognises Procurement Leaders for its strategy, commercial performance and editorial excellence. "A good-looking magazine, an even better-looking website and a commercial performance to be envied," commented judges.
Cheers all round then...
David Rae is editor of Procurement Leaders
More from the editor
PROCUREMENT FEATURES
- Editor's Letter: Measured excellence
Mon, 01 Aug 2011 14:20:26 - People: Demand for consultative skills soaring
Mon, 01 Aug 2011 12:22:38 - In Focus: Automotive supplier mergers may lead to roadblock
Mon, 01 Aug 2011 12:17:09 - Technology column: Route through the clouds
Mon, 01 Aug 2011 12:13:13 - Technology: Best-of-breed still has the edge over ERP suites in procurement
Mon, 01 Aug 2011 12:13:13 - Sustainability: Puma wins race to count carbon cost
Mon, 01 Aug 2011 12:13:13 - Sustainability Column: Where sustainable procurement meets a growth strategy
Mon, 01 Aug 2011 12:13:13 - Just In Time Q&A: Tata Steel's Nick Reeks
Mon, 01 Aug 2011 12:13:13 - Roundtable: Under the skin of procurement
Mon, 01 Aug 2011 12:13:13 - In the Network: London Forum Highlights
Mon, 01 Aug 2011 12:13:13
PROCUREMENT OPINIONS
The food versus fuel debate has been simmering for some time, but recent events have stoked tensions on both sides of the argument, writes Richard Edwards. Deverill's advocate: Don't write off China
The food versus fuel debate has been simmering for some time, but recent events have stoked tensions on both sides of the argument, writes Richard Edwards. Economic view: Continental shift
Policy and business practices continue to contribute to food inflation and a supply crisis in Africa that has serious implications not ?just for local farmers but for governments and economies throughout the world - so why are the solutions still largely being ignored? Asks Philip Thornton
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