Last week, the 4C Consumer Products team organised an engaging roundtable event. During this session, industry-leading procurement experts delved into the complexities of balancing global and local procurement requirements.
Here are the key insights from the event:
- Alignment of Procurement to the Corporate organisational strategy is crucial
Procurement should seek to remain aligned to the wider organisation strategy where possible. This can be particularly difficult in organisations with highly diverse portfolios operating with a variety of models. Most organisations build a hybrid procurement structure.
- Approach it activity by activity and category by category – there is no one-size-fits-all
Some activities have a strong scale play, whereas others are highly reliant on stakeholder relationships which depend on proximity. Flexibility is needed as to the level of centralisation across different categories and activities. Clear guidelines on activities and processes help stakeholders understand how to interact with procurement.
- Chief Procurement Officer needs to act as a “Chief Sales Officer”
The CPO should as a “Chief Sales Officer,” effectively communicating and selling the function’s purpose to the wider organisation. Many people do not fully understand the activities within procurement, necessitating clear and persuasive advocacy.
- Bring deep category expertise at a global level
Global teams often seem remote, slow, and disconnected from local operations. For indirects, global teams must create “pull” for their expertise, showing local markets their value beyond mandates. Global teams should accelerate and enhance local operations, rather than become bottle necks.
- Be global, but don’t be in the “centre”
Global procurement roles do not necessarily need to be based at the corporate headquarters. Keeping them close and visible to the markets can enhance their effectiveness and help to breakdown an “us vs. them” mentality.
- AI has the potential to change the global / local dynamic
AI could have significant impact on the role of global with potential to make expertise more widely available but also the potential to provide far greater insight and predictability in large and complex organisations.
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If you are curious to learn more, download the full key insights here: Crafting a Global, Regional, and Local Organisational Model for Procurement in the Consumer Products Industry – 4C
We provide a range of services designed to help consumer businesses stay competitive, respond to market dynamics, and improve their EBITDA, from cost reduction and market intelligence through to process optimisation and supply chain resilience. Reach out to Katy Gallagher to find out more.
