By Bill Huber, Director, CPO Services, TPI
Procurement Outsourcing:
Here at SIG, Rajeev Menon, VP & head of Procurement
Services for Genpact
based in Hyderabad, and Judy Burds, VP Business Development, reported that
Genpact has seen a significant pick up in procurement outsourcing awards in
recent months. This has included stand-alone purchase transaction
processing for a global pharmaceutical company, expansion of addressed spend
with existing customers, and significant procurement work as part of several
larger F&A engagements. Genpact is also seeing interest growing in their
tail-end spend management services.
New Position Chief Supply Chain Officer (CSCO)
IBM showed its
recent research on “The Supply Chain of the Future” which included fascinating
data on five critical issues: Cost Containment, Visibility, Risk, Customer Intimacy
and Globalization. According to IBM, the CSCO combines the role of the
CPO and the COO. It was a visionary session which provided much food for
thought for all in the room.
Our view
We have rarely seen a higher level of intellectual
engagement at a conference, and there has been significant exchange of best
practices. The consensus is that despite the current political climate,
sourcing decisions are now, more than ever, critically focused on solutions
that will provide greater value to the customers for the same or lower price.
This suggests an increase in the emphasis of capability in the “3C
Framework for Successful Sourcing Strategies” (Capability, Capacity and
Cost). I expect to see many of the approaches discussed at this event increase
and become more mainstream during the next year. The silver lining in all
this is likely to be meaningful innovation and improved productivity in
sourcing.
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