ABSTRACT
This chapter discusses the essential components that allow procurement departments to shift from a tactical mindset to strategic management. It examines topics such as resource limitations, skills gaps, training, and knowledge management, as well as procurement’s overall reputation. While this transformation is happening at a functional level, behind the curtains most procurement organizations are still busy addressing what is commonly considered to be tactical work: responding to contract requests, managing supplier communications, running requests for proposal, and preparing supplier scorecards. While category management has been adopted as a principle, when it comes to practice, most organizations continue to struggle with achieving or sustaining it along with a flurry of other tactical responsibilities. The procurement approach was predominantly transactional. There was little focus on developing strategic long-term relationships with suppliers and limited cooperation between purchasing, engineering, and quality functions.
