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Green Purchasing

Key Responsibilities of Supply Management


Professionals
• Expanding the mission, goals, and performance expectations of
purchasing and supply;
• Developing category strategies;
• Developing and managing suppliers;
• Designing and operating multiple supply networks;
• Leveraging technology enablers;
• Collaborating internally and externally;
• Attracting and retaining supply management talent;
• Managing and enabling the future supply management
organization and measurement systems.
Expanding the Mission, Goals, and Performance
Expectations
• Expanding the breadth and depth of cost management efforts in areas such
as outsourcing/ insourcing, cost modeling and value chain mapping for
identification of cost improvement opportunities, purchase item
standardization and complexity reduction.

• Identifying and mitigating supply risks of any kind to ensure business


continuity: for example, price volatility, potential supply disruptions,
financially troubled suppliers, negative impacts on sustainability and the
environment, protection of intellectual properties, and so forth.

• Leveraging supplier capabilities and know-how to improve performance


and establish new sources of revenue: for example, leverage jointly
developed technologies with suppliers to enhance revenue generation by
being first to market.
Expanding the Mission, Goals, and Performance
Expectations
• Increasing the magnitude of worldwide and regional (vs. local) sourcing by
companies who must find and establish high performance suppliers
anywhere in the world to support product/service and customer market
segmentation.

• Accelerating and obtaining more innovation from suppliers.

• Purchasing and supply will also be expected to play a growing role in the
sustainability efforts of firms, many of which closely involve suppliers
Developing Category Strategies
• Developing category strategies will become broader and more complex

• Companies, in the future, will look beyond cost, quality and delivery as
purchase category strategy goals.

• They will increasingly look for other contributions such as innovation, risk
reduction, sustainability and cycle time reduction.

• Companies will increasingly use value-focused sourcing approaches to


evaluate how a supplier or group of suppliers may be utilized to gain
competitive advantage for categories with high business impact.

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