In the first installment in this series on Procurement Business Services, we discussed how procurement must have a strong competency in managing itself as a services business, being an integrator and “assembler” of external procurement services (including professional, content/information, and application services).
But before we explore how firms manage to do this, we should first discuss the “what” and “why” of Procurement Business Services (PBS).
In this second installment of this series, we define the following terms: Business Service; Shared Services and “Global Business Services” (model versus organization); Center of Excellence (CoE); Shared Service Centers (or “Service Centers” for short); and more. We also provide insights to the following questions:
- Should procurement really be a business services group?
- Should procurement report into a shared services/GBS organization?
- Where are Procurement Business Services going?
In future installments of this research series, we will outline where specifically procurement organizations are using CoEs and the organizational models they are using to deliver those services. We’ll also discuss practices from other services industries and process domains (e.g., CRM, Lean/Six Sigma in manufacturing) to show how the “procurement services business” can truly be managed like any other world class group.