I thought instead of writing a new blog entry at this time I would redirect to an article that I wrote which was just published in CPO Agenda magazine. It is my opinion on the future of procurement outsourcing.
You can access the article by clicking on this link Waiting for the Wave
I'd be interested in the opinions of others regarding procurement outsourcing's future.
1 comment:
I read your article with interest and I'm sure you're absolutely correct about saving money by outsourcing the Purchasing function and I know some organizations have done so successfully.
It's also true many organizations haven't and I might have some insight into why 'some of them' have not and probably will not.
I used to work at a very large organization in Toronto where this joke was common in the I.T. department:
You can purchase anything from anywhere, as long as it's from IBM.
Of course the Vice President of I.T. had moved to my large organization from IBM and who knows why he insisted on purchasing from them? As usual, there were rumors.
Still, on one occasion I was forced to intervene due to interference with a $12 million RFP, initially not won by IBM. For whatever reason, they tried to change the specs after the contract was decided on points, which is a very big no-no.
Sometimes senior people want to have control of Purchasing, for whatever reason. In those cases, Purchasing will never be outsourced, no matter the savings to the organization.
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