By Hervé Legenvre, PhD EIPM
We have recently compeleted a comprehensive research project on how purchasing helps to create and capture value.
I am starting a series of posts on this topic.
Overall, our findings show that companies which have outstanding financial and commercial performance excel in the following 3 Imperatives:
They involve the purchasing organization in gathering unmet needs.
Step by step a purchasing organization can win its seat at the table where decisions are taken. It becomes closer to clients and gains opportunities to anticipate market changes and contributes to building competitive advantages.
They look for innovation opportunities within their supplierecosystem.
65% of the companies we have surveyed, believe buyers will be increasingly expected to engage with Tier 2, Tier 3 suppliers, new players and start-ups. Furthermore a new set of practices are currently being developed and refined in order to access innovation opportunities in the ecosystem.
They involve suppliers in innovation projects.
Best performing companies display high levels of collaboration with key suppliers especially on innovation projects that aim at increasing efficiency and at minimizing risks. Other innovation projects tend to call for a wider mix of existing and new players. This goes well beyond product or technology innovation.
Find out about our research: http://www.eipm.org/research/observatory/
Next Posts: Exploring the Ecosystem!
EIPM Value Creation Observatory Director