HBR Blog Post: The Problem with Procurement

PricewaterhouseCoopers (PwC) Remko van Hoek, contributor to the HBR Blog Network, explores why the procurement function in organizations is still not taken seriously. PwC discovered through a survey that procurement managers are their own worst enemy, both with their internal customers and external suppliers. Here are highlights of the findings – directly quoted:

  • Only about a third of managers are actually bringing any supplier intelligence into their organizations by advocating for suppliers and facilitating new connections for them… Just 20% claim to be communicating business insights shared by those customers
  • Many procurement managers are trying to demonstrate internally that they have strategic value. They’re gathering intelligence systematically about the company’s stakeholders and communicating their successes. But it isn’t getting much further than that. Less than 30% of the time do we see procurement managers customizing value propositions for internal customers and stakeholders, tracking satisfaction levels and setting targets for satisfaction.
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