I’m not involved in procurement! How many times have we heard this one?

November 23rd, 2010

I’m not even really sure this is an objection any longer. I used to think so, but now I just think it is the answer of uninformed retail home office employees.

The best procurement professionals are those that understand the interactions of all functional areas within a business. These well informed professionals also understand the importance of collaboration and aggregation in order to drive as much cost from an organization as possible. So what functional business areas might be actively involved in or impacted by procurement and or e-procurement systems?

There are certainly many areas of a retail company that have procurement connections as well as some input as to products or services being sourced with e-procurement tools. The following although not complete are probably a pretty good start.

1. Finance
2. Purchasing
3. Logistics
4. Manufacturing
5. Warehousing
6. Materials Management
7. Inventory Management
8. Supply Chain
9. Distribution
10. Transportation
11. Maintenance
12. Administration
13. Operations
14. Loss Prevention

What other areas can you come up with?

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