- Tags : Strategic Purchasing
By: ProcurementIQ Staff Writer, Ashley McKay
In the My Purchasing Center article, “When Tactical Gains Don’t Translate Into Strategic Victory,” the guest editor compares tactical gains to winning the battle, but losing the war. “This classic case of tactical victory eventually resulting in strategic defeat provides an apt illustration of how procurement teams fail in executing long-term strategies when forced to focus on day-to-day operations,” the guest editor states.
What needs to be considered to win the war?
The guest editor highlights two items:
- Operational or tactical performance metrics should not drive strategic sourcing efforts
- The procurement team must be given a strategic mandate that is supported through proper organizational design, designated roles and responsibilities, and defined minimum skills, capabilities, tools, and procedures
But, what if a mandate isn’t put in place?
Organizations won’t always understand the value strategic sourcing can bring to the organization and are happy with the tactical gains they’re receiving. After all, what isn’t broken doesn’t need to be fixed, right? So, before a mandate is even put in place, upper management will have to understand the benefits of transforming their procurement department. This will likely require the procurement team to be proactive. They will have to build a business case for themselves, identifying and outlining the long-term benefits, costs, risks and timeline for the transition. Next, procurement will have to present the business case to stakeholders to, eventually, receive buy in. And, this is just the start!
The move from tactical to strategic will take time and effort, but the long-term benefits can result in triumph for the procurement department and the entire organization. Are you ready to take the journey and move closer toward strategic victory?