Ivalua unveils the results of its study “Procurement: strategic partners to the business?”
Ivalua announces the release of the results of its second International Procurement Executives survey, aimed at determining the status of the relations between Procurement and other Business Departments within big multinational companies.
The 2014 Procurement Executives is the 1st international cross-business survey, led by Ivalua to evaluate the way Business Executives (IT, Finance, HR, Communications…) see the role and the impact of Procurement within their companies and where Procurement is, in the journey to establishing partnership relationships with other Business Departments.
“The 2014 Procurement Executives survey demonstrates that despite Procurement willingness to move closer to the Business stakeholders, to address their specifics issues and to better connect with them, it is not viewed as fully-fledged Business Partners yet. Achieving this new operating model requires Procurement to develop buyers’ strategic vision of each business units, their leadership skills and their ability to guide and influence business decision”, said Dan Amzallag, CEO Ivalua Inc.
Ivalua has surveyed more than 400 Procurement Executives and 350 Executives from other Business Units (including Finance, IS, Sales, CSR / SD, Legal, R&D, Communication / Marketing and HR) working at multinational companies (representing 15 countries worldwide) in order to provide a 360° vision and report to report on both sides of the story.
The main lessons arising from the survey:
- Being recognized as partner to the Business Units is a top priority on Procurement Executives’ agendas
- Procurement have formed a successful partnership with Finance: the survey shows that Procurement departments have undergone a successful process of becoming more financially oriented by including financial goals in their strategy and operational approach
- There’s a significant gap between Procurement and other Business departments perception of the Procurement mission, particularly with regards to establishing processes
- Before it can become a true Business Partner, the Procurement must master all the steps in the purchasing process.
- By centralizing supplier data and ensuring its reliability eProcurement tools plays an essential role in the professionalization of the procurement function and the legitimizing of its role as a Business Partner for the business units.
“To the many executives who have provided input into the Ivalua Procurement Executives survey, thank you for your time and sharing your views and insight,” concludes Dan Amzallag.