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Procurement 2.0 — Procurement, with a higher purpose.

Procurement 2.0 offers a shift away from the traditional portrait of cost-driven and siloed procurement.

In the age of digital transformation and shifting consumer concerns, procurement 2.0 is a breath of fresh air. It is,

Procurement, with a higher purpose.

Taken from a blog post from several years ago, by Neil Deverill, Procurement 2.0 is described as a movement to actively engage management processes in the procurement activity. Addressing gaps in the previous flaws of the function, by having a CPO lead the management of new process implementation. This philosophy was seen as a way of effectively breaking down corporate silos and enhancing the value chain through procurement activities and strategies; raising awareness of the importance procurement fulfills to both product and market (Henshall 2010).

The post, by Deverill, was written a little over 7 years ago, and a lot has happened in the field since then. Nonetheless, the essence of the definition holds true. Without the enhanced engagement and shifts in management processes in the procurement activity, procurement would never have become such a crucial element of value chain growth.

I respect Deverill wildly, and the concept of Procurement 2.0 wouldn’t be on my radar if it weren’t for him. But, seven years have passed, and this wouldn’t be a Kodiak Community blog post without a bit of friendly redefining. Right?

So, here it is! My definition of Procurement 2.0, today:

A methodology (or guideline) for sourcing and purchasing — aided by emerging technologies — to procure materials with people, planet and profit as a key priority.

Procurement 2.0 has required a shift in a mindset, as much as it is a shift in strategies and activities.

Whichever way you slice it, a shift has occurred. And it’s time to take notice.

A new age of Procurement

READ THE FULL ARTICLE HERE

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Topics

  • Finance

Categories

  • business
  • environment
  • supplier relationship management
  • supply chain
  • supply chain management
  • sustainability
  • procurement

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