Recently I had the privilege of meeting with some top procurement/supply chain leaders in Austria. I wanted to hear from them what the challenges and opportunities were in the European market vs. that which I am more familiar with, which is North America.
Obviously there are some differences, particularly regarding the vast number of countries, in a relatively small geographical space, with different languages, different laws, and inherently different cultures. There are also the issues of emerging economies and in some cases the not quite ethical accepted way of doing business in these types of marketplaces.
But what struck me more were the similarities -- the business attitude towards the procurement organizations. The individuals with whom I met faced the same barriers that procurement groups do in North America. That is gaining the requisite respect from the rest of the business for how procurement can impact and advance the enterprise.
Procurement in Austria also carries with it the "cost savings" hair shirt and the teams struggle to position themselves more effectively. The individuals with whom I met with have made significant strides in their being accepted by the business, but just when they potentially are on the tipping point of greater acceptance, the other leaders in the organization seem to lose their appetite for pushing further to achieve beneficial inroads.
The same question is asked by these procurement leaders -- which is why? Why can't the organization
see that not everyone is a negotiator, not everyone knows the dynamics of the marketplace, not everyone has the unique insight that procurement professionals have of the activities of the entire organization and the marketplace and that this group can provide leading edge advice which can not only save "costs" but deliver excellence, as well as enhance revenues significantly. Similar as to here in North America, there is the proverbial banging of the head against the wall.
In the June/July issue of Supply and Demand Chain Executive Magazine, which should be available any day now, I write an article called "Is Procurement a Brand or is it Branded".
In this article I provide some insights, which I now believe have global relevance, based on my recent meetings.
Obviously there are some differences, particularly regarding the vast number of countries, in a relatively small geographical space, with different languages, different laws, and inherently different cultures. There are also the issues of emerging economies and in some cases the not quite ethical accepted way of doing business in these types of marketplaces.
But what struck me more were the similarities -- the business attitude towards the procurement organizations. The individuals with whom I met faced the same barriers that procurement groups do in North America. That is gaining the requisite respect from the rest of the business for how procurement can impact and advance the enterprise.
Procurement in Austria also carries with it the "cost savings" hair shirt and the teams struggle to position themselves more effectively. The individuals with whom I met with have made significant strides in their being accepted by the business, but just when they potentially are on the tipping point of greater acceptance, the other leaders in the organization seem to lose their appetite for pushing further to achieve beneficial inroads.
The same question is asked by these procurement leaders -- which is why? Why can't the organization
see that not everyone is a negotiator, not everyone knows the dynamics of the marketplace, not everyone has the unique insight that procurement professionals have of the activities of the entire organization and the marketplace and that this group can provide leading edge advice which can not only save "costs" but deliver excellence, as well as enhance revenues significantly. Similar as to here in North America, there is the proverbial banging of the head against the wall.In the June/July issue of Supply and Demand Chain Executive Magazine, which should be available any day now, I write an article called "Is Procurement a Brand or is it Branded".
In this article I provide some insights, which I now believe have global relevance, based on my recent meetings.
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