Business partnerships should be the priority for procurement

New survey by Ivalua reveals that forming a successful business partnership is the number one priority for the majority of procurement executives
Business partnerships should be the priority for procurement

Eighty-three percent of procurement executives have said the the creation of partnerships with other business units should be a priority. That’s the findings of a new survey by e-procurement provider Ivalua.

Over two thirds of procurement executives said that business partnerships, particularly with finance departments are the most important. Similarly, 62 percent said that they have formed successful partnerships with the finance department because they share similar objectives. This is in comparison to 43 percent of respondents who said they shared goals with legal and 39 percent with IT.

But according to the survey of 400 procurement executives and 350 department heads, procurement needs to fully master the purchasing process before it can become a fully-realised business partner.

Seventy-one percent said that proactively developing an understanding of the supply market would go someway to helping procurement achieve this, while 63 percent agreed that better communication tools would help the partnership process.

Speaking to Supply Management, Gérard Dahan, general manager at Ivalua, EMEA said: “The survey demonstrates that despite procurement’s willingness to move closer to the business’ stakeholders, to address their specific issues and to better connect with them, it is not viewed as a fully-fledged business partner yet.

“Achieving this new operating model requires procurement to develop buyers’ strategic vision of each business units, their leadership skills as well as their ability to guide and influence business decision,” he added.

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by Laura Stackhouse

readmt.com Editor

Laura Stackhouse is the Web Editor of readmt.com, an official publication of the International Marine Purchasing Association (IMPA). To discuss news, features or contributing to readmt.com please get in touch.

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