💭In our latest workshop session, we discussed how Procurement contributes to a company's competitive advantage across dimensions such as #cost, #quality, #innovation, #resilience, and #sustainability. In this context, performance management is vital to fully capture Procurement's value contribution to the business.

🤔However, as our Procurement experts point out: the ability to measure performance doesn't entirely paint the picture. For one, understanding the full-spectrum system and its antecedents for value creation in Procurement is what matters, not isolated functionally focused efforts.

💎To evolve from an uncut gem into a diamond, CPOs must align four key factors to support the firm's strategy. In a nutshell:
✅Strategic alignment: Creating and maintaining a fit with corporate business strategy (e.g., focus on quality leadership)
✅Functional alignment: Creating and maintaining a fit between different functions (e.g., early involvement in product development processes)
✅Supplier alignment: Creating and maintaining a fit between own goals and supplier's strategies (e.g., co-developing a sustainability roadmap)
✅Purchasing alignment: Creating and maintaining a fit between the purchasing strategy and concrete purchasing practices (e.g., negotiation skills in case of cost leadership strategy)

For more information, see the slide below ⬇️.

Let us know what you think about alignment in Procurement and where you see the biggest challenges.

🤝 Martina Buchhauser - The Procurement Initiative, Erik Hofmann, Nicolai-André Stickler, Laurin Zemmrich, Institut für Supply Chain Management, Universität St.Gallen, H&Z Management Consulting, Harald Enz

#Procurement #Alignment