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Re-inventing Direct Procurement

Most procurement groups have both formalized and centralized their strategies and processes, with particular focus on strategic sourcing methodologies to help "rightsize" the supply base.

But has procurement become a truly strategic supply management transformation agent that helps lead the redesign and orchestration of multi-tier supply beyond its primary role as negotiator, cost cutter, and contract manager? Unfortunately, in the supply chain, the answer is generally no.

In this report based on a recent study conducted with ISM, we highlight how and where direct procurement organizations are exerting their influence and leadership (or not) on the broader extended supply chain. We also examine the impact on performance, and specifically how more advanced organizations are implementing 11 key supply management activities that transcend traditional direct procurement.

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