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Is Procurement On The Rise?

October 25, 2010

In previous posts, I raised the question whether the new IT delivery models would lead to transformation of the CIO function. As dependence moves to outsourced providers, technical skills must be relaced by commercial competence. So will this lead to growing participation by procurement? I have heard just today about two pharma companies where in one, Procurement has been given ownership of all facilities management activity; and in the other, the CPO has been handed the CIO role in addition to his procurement responsibilities. The story in both is that commercial relationship skills are becoming key to business performance … Join me when I discuss this – and other interesting IT vendor management trends – with Bill Huber of TPI – see events listing at http://www.iaccm.com

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One Comment
  1. Syed Khan permalink

    Tim
    We had Manufacturing reporting to us in Logistics/Supply Chain in a CD manufacturing and fullfillment business., it depends what the driver for the business, i.e. in another Edible oil Company, the procurement head rose to become the CEO because the success depended on continuous and sustained supplies of this seasonal raw materials, and they could sell all they produce and could not meet the demand. Now with Globalisation and increased competition IT became one of the Strategic & key enablers of business without out which both the cost and operational efficiencies cannot be met, in SME where you donot have the CIO’s, its mostly the BU’s driving their IT needs to improve their real time info needs and business cycles.

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