Peter Spiller - Procurement 20/20: Supply Entrepreneurship in a Changing World

Contents

Additional Praise For Procurement 20/20

Shaping new products through early involvement, bringing outside perspectives to better design a companys value chain, or fully managing a companys outsourcing networkthe expectations for CPOs are rising constantly. Procurement 20/20 compellingly explains what CPOs should expect, and how they can shape the future.

Fredrick Spalcke, EVP Procurement, Philips

Procurement 20/20 provides valuable insights into the impact globalization and volatility will have throughout the value chain. Leaders will benefit in understanding how these factors and others will shape their sourcing strategies today and into the future.

Michael Radojevic, Managing Director of Technology and Corporate Services Procurement, United Airlines

In todays fast changing world, managing to a benchmark is important but simply not enough. Future development and trends have to be anticipated and management adjusted accordingly. In this spirit Procurement 20/20 is an excellent resource for any CPO. It provides compelling visions for the future of the function and hands-on solutions for a challenging business environment. A must read!

Rdiger Eberhard, CPO, Evonik

Procurement 20/20 looks beyond the classical sourcing tasks and explores how to establish strategic business models with the supply base, reduce risks, and drive growth to create more value along a companys full value chain. An inspiring thought-piece for any procurement professional.

Albie van Buel, CPO, Vestas Wind

We aspire to mastering all opportunities offered by the rapidly changing marketplace, and this book provides an excellent road map for the journey that lies ahead of us.

Hans Melotte, Vice President and Chief Procurement Officer, Johnson & Johnson

Procurement 20/20 takes a bold look into the future and explores the changes that the procurement function needs to make. It is a must read for the ambitious CPO.

Babara Kux, Member of the Managing Board, Siemens AG

The next decade will require the procurement function to better understand the dynamic and volatile world, particularly where sourcing strategies must be flexible and creative to operate in a global footprint. This book provides the CPO and the procurement team with several provocative trends that will shape the coming years, and a structured road map to address the opportunities.

Luiz Lissoni, Vice President of Supply Chain, Brasil Foods

Procurement 20/20 is an inspiring invitation to stop and reflect on the new normal for procurement. And it sends a clear message to CPOs: Its time to get ready for the next decade!

Bertrand Conqueret, CPO, Henkel

This book explores very convincingly how CPOs and their organizations need to adapt to deal with the challenges of the future.

Vicente San Miguel, Chief Procurement Officer, Telefnica

A highly inspiring book: The strategic insights draw the necessary change agenda for all CPOs. It is written in a most engaging style, provides numerous examples relevant to todays world, establishes the burning platform, and outlines the key elements that the new procurement agenda must address. If there ever was a book to motivate the CPO to action, this is it!

Alan Hustwick, CPO, Pacific Aluminium

Todays global megatrends make the strategic side of procurement increasingly vital for the success of any business, from strategic supply management to sourcing innovation. A revealing book on supply entrepreneurship.

Paul van Attekum, EVP Supply Management, ASML

A must-read for practitioners and academics alike.

Christian Terwiesch, Andrew M. Heller Professor at the Wharton School of the University of Pennsylvania

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Copyright 2014 by McKinsey & Co., Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

Spiller, Peter, 1972

Procurement 20/20 : supply entrepreneurship in a changing world / Peter Spiller, Nicolas Reinecke, Drew Ungerman, Henrique Teixeira.

pages cm

Includes index.

ISBN 978-1-118-80008-9 (cloth); ISBN 978-1-118-80047-8 (ebk); ISBN 978-1-118-80070-6 (ebk)

1. Industrial procurement. I. Title.

HD39.5.S6866 2014

658.72dc23

2013038860

Preface

For decades, McKinsey & Company has worked with clients to improve their procurement practices and achieve distinctive and sustainable impact. We have averaged more than 250 engagements per year and served chief procurement officers (CPOs) from Fortune 100 companies and startups alike. Those companies have come from industries ranging from automotive and assembly, chemicals and basic materials, electronics and high tech to energy, banking, and other services. Many of them have been long-standing clients, served on a broad range of strategic and operational topics, and a large share we have been advising at different procurement inflection points over time: when a new CPO came on board, a merger required significant synergy contributions from procurement, a general reorganization offered the opportunity to strengthen the central procurement governance, or when new sourcing markets had to be explored.