Harvard Business Review recognizes today's leaders cannot afford to downplay procurement
Mar 28, 2014 9:45:00 AM
We are pleased to bring you the news that Proxima’s research and thinking on how commerce has evolved, and the implications for modern corporations, is now being recognized at the highest level globally.
The Harvard Business Review has just published an article by Proxima’s CEO, Matthew Eatough, setting out just how important it is that business reassesses the role procurement has in delivering on corporate objectives.
Click here to read the Harvard Business Review article
Proxima’s own research of nearly 2,000 publicly traded companies shows that 69.9% of corporate revenue now goes on suppliers – a figure that is still rising. Such is their impact on performance, suppliers must now be viewed as an extension of the company, and any appraisal of a corporation must now encompass its supply base.
The problem (and opportunity) with this ‘corporate virtualization’ occurs because the internal handling of suppliers – conventional procurement - has failed to address their impact on performance. The true potential of suppliers lies dormant.
Eatough argues that like the internal workforce, suppliers must be incentivized, coached, sanctioned and rewarded to help achieve corporate objectives. They need to be brought close; currently business pushes them away. He suggests that instead of seeing procurement as an administrative buyer of ‘stuff’, it has a huge role to play strategically. He explores in detail what has gone wrong, and ways of addressing this, both in-house, and of course through the use of third parties such as Proxima itself.
The Harvard Business Review is widely considered to be the world’s foremost academic business magazine. It has, since its foundation in 1922, become the natural forum for the most influential and respected business thinkers and leaders to express new ideas. In fact the magazine itself states that it has just one goal: to be the source of the best new ideas for people creating, leading, and transforming business.
We are proud to see our perspectives associated and aligned with these ideals. And we hope you share our excitement about the increasing importance and positive publicity this often marginalized function is now receiving at the most senior echelons of global business thought leadership.
Please do share your thoughts and comments below in the comment box or back on the HBR website.