10. ERPs Proliferated. Today, eProcurement and eSourcing are two of the most useful tools in purchasing. Ten years ago, these terms were unknown.
9. "Procurement" replaced "Purchasing". Ten years ago, even top purchasing departments processed purchase orders. Today, procurement departments centralize the supplier selection process, not the transactions, which are delegated to end users or outsourced.
8. Procurement Controls More Spend. When procurement deliver results, management seeks more spend that they can positively impact. Once sourced by other departments, categories like fleet management, benefits, and travel services are now sourced by procurement.
7. Social Responsibility Became A Top Priority. Whether for philanthropy or to avoid media scandals, management counts on procurement more than ever to buy from diverse suppliers, make environmentally-conscious decisions, and do business ethically.
6. Measurement Was Mandated. With the potential of smart purchasing widely known, senior management more strictly holds their procurement professionals accountable for results. The use of procurement KPIs and dashboards is now the norm.
5. Strategic Sourcing became an Internal Process. In the past, strategic sourcing was done mostly by consulting firms hired to help companies reduce spend. Today, many companies have their own refined and documented in-house strategic sourcing processes.
4. Vendor Roles Expanded. In 1998, there was talk about "partnering" with vendors. Today, there's action. Top procurement departments actively develop their vendors and look to their supply base for ideas, performance, and innovation.
3. Global Sourcing Went Mainstream. Ten years ago, only the progressive companies were searching abroad for suppliers. Now, in some countries, it is difficult to find products manufactured domestically.
2. The CPO Position Was Adopted. There is a growing number of professionals with the title "Chief Procurement Officer."
1. The Supply Chain Was Recognized. In the last decade, companies more closely analyzed the way material flows into, through, and out of the organization. This "supply chain" focus has those who once just placed orders now responsible for inventory, warehousing, outbound logistics, and distribution.
Adapted from: Top 10 Purchasing Changes In 10 Years. http://bit.ly/cfPJKj
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