Chicaog, IL (PRWEB) January 04, 2017
The Procurement Executive Round Table (PERT) – a collaboration between The Mpower Group, Corporate United and ISM-Chicago met on Thursday, October 13, 2016 for a day long summit focused on the challenges of creating real value for their stakeholders, not just lower prices. “TCO=Destroy Value? Going Beyond Cost and Applying Next Practices to Create Value” was the topic for the day and expectedly it generated spirited discussion but almost unanimous agreement by the end of the day. PERT is a relaunch of the highly successful Next Practices Xchange – “NPX.” Hosted by Jim Townsend at Walgreen’s, it was attended by a “Who’s Who” of the Midwest’s top Strategic Sourcing, Procurement and Supply Chain Executives. Over 20 senior executives met who represent over 760,000 employees and $172 billion in revenue and the group expanded its membership by 25% from our initial meeting.Dalip Raheja, President and CEO and Anne Kohler, EVP and COO of The Mpower Group facilitated the session. The group reached the following conclusions fairly rapidly and then moved on to discussing possible solutions
- Supply Chain / Procurement are not identifying the right stakeholders
- Thus, many Value Drivers are being left on the table leading to significant misalignment with key stakeholders
- Too much focus on TCO leads to erosion of Value Drivers as well. Value can only be defined by our stakeholders
- Value can and often is nonmonetary and not measurable and this type of Value can have far greater influence on stakeholder decisions and behaviours – and this is a major challenge for almost ALL Supply Chain/Procurement organizations to deal with
The group quickly moved into what changes need to be made to deal with the issues above and four specific areas were identified and highlighted: Focus on those Value Drivers that drive BU collaboration
- New competencies (Strategic) in Supply Chain / Procurement organizations that support the roles of Strategic Business Partner, Change Agent, Consultant and NOT JUST Process Leader
- New metrics
- New relationship with Suppliers – away from adversarial to collaborative
There was almost total agreement with the above list and that this was not going to be easy. Yet, without making these changes, significant Value Drivers would continue to be left on the table thus further eroding Supply Chain / Procurement’s credibility. Given the charter of PERT to be a Community of Practice, another group of executives volunteered to work on developing some Next Practices around Value Drivers and Metrics. The Talent Management sub group continues its work and is developing a shared approach to developing Strategic competencies where they can send some of their High Potential employees to the same program only for PERT members.
Procurement Executive Round Table (PERT), is a collaboration between The Mpower Group, Corporate United and ISM-Chicago. PERT is a “members-only” peer -to-peer organization comprised of senior executives from Fortune 1,000 organizations. The group meets quarterly to share ideas in a forum setting, provide advanced solutions and network. Each member brings expertise and varied talents to the group which allows all members to benefit from participation. PERT addresses major Global Sourcing and Supply Chain challenges such as:
- Building World-Class Sourcing and Supply Chain Organizations
- Relationship Management (SRM) and Governance
- Category Management
- Integration of Technology into Supply Chain
- Competency Based Talent Management
- Managing Outsourcing Arrangements
Meeting topics will be chosen by the members and the goal is to develop a Community of Practice to enable and facilitate the sharing of Next Practices. The meetings will be facilitated by globally recognized and award-winning Sourcing, Procurement and Supply Chain consultancy – The Mpower Group.
About The Mpower Group
The Mpower Group (TMG) is a global management consulting firm. We work with Fortune 500 companies to unleash the potential in their Strategic Sourcing, Procurement and Supply Chain organizations through Strategic Talent Management, Accelerating Transformations, and Maximizing Value from large or complex transactions. TMG is in the business of Mpowering our clients to accelerate exceptional business results by unleashing the full potential of their organizations. Our expertise ranges from developing strategies and executing large, global business transformations across entire organizations to assistance with specific projects or individual transactions.