As many of us know, the power and importance of procurement is still largely undermined and not recognized in many companies and organizations. Let’s call those entities Entity 1.0.
What are the characteristics of a typical Entity 1.0? Normally you can identify this entity by the following (and you should run away from these):
- The management still uses fax machines, hangs all possible certificates (and some pictures) in the frames on office walls;
- It either has extremely high staff turnover or no turnover at all (both are alarm signals);
- Employees should register the time of arrival and departure;
- The website claims the organization is huge and modern, while the last news update was 6 months ago.
- Has no dedicated Procurement Department or position.
The Entity 1.0 will never understand why you, as a procurement professional, is so important for the entity and why you should be motivated.
Entity 1.0 will be a history very soon.
Meanwhile, Entity 2.0 sees that a department or employee spending some 20-70% of entity’s budget is, to say the least, mega important. Entity 2.0 understands that procurement is entity’s business card when it deals with external parties and suppliers. More, in the world occupied by corruption, Entity 2.0 recognizes that an employee managing spend channels is simply obliged to be very well compensated.
Of course, it is not only about money. Procurement is a “vein” of any organization and it provides the organization with all necessary tools, products and services so the organization thrives. Therefore, this vein should be properly treated. It should be given the importance it deserves.
Speaking business language, Procurement should be well-positioned in any organization or company. Procurement should have a seat and voice in organization’s board and should be consulted all strategic decisions. Entity 2.0 knows this.
Conduct a research yourself and review the Entity 2.0 type organizations, where Procurement is one of the pillars. You will see that Entity 2.0 flourishes. It multiplies sales and budget. It has happy staff and progressively-thinking management. It is well-positioned online and supports activities with super successful mobile applications. You will see that Entity 2.0 generally has a very positive image and is considered a great place to work.
Procurement’s place in the organization is a perfect mirror to look at before making your future career decision.