LONDON, July 20, 2015 /PRNewswire/ --
Exclusive research among global sourcing & procurement executives finds an increasing focus on Supplier-Enabled Innovation (SEI)
Procurement is a key enabler of corporate innovation thanks to the connectivity it enjoys with suppliers and key business stakeholders, research by Procurement Leaders has found.
The research, carried out among Chief Procurement Officers at large, global organisations, found that procurement is engaged in a new role in which it is responsible for connecting capability in the supply base with stakeholder and consumer need, and, in doing so, opening the doors to the benefits of Supplier-Enabled Innovation (SEI).
"Tapping into the enormous capability of the thousands of suppliers with whom we do business is perhaps the single largest opportunity procurement has," said John Paterson, Chairman of the Procurement Leaders Advisory Board and the former Chief Procurement Officer of IBM.
The Procurement Leaders Supplier-Enabled Innovation Compass explores 22 different activities that can be used to unlock innovation from suppliers; and found that connectivity with suppliers and consumers and the use of technology are key enablers to success.
Key findings include:
- Trail-blazers in SEI put a large emphasis on the time procurement spends with its key suppliers.
- Procurement must better understand consumer needs and aspirations if it is to successfully deliver results through SEI.
Procurement must see innovation as a formal, disciplined process if it is to achieve success, yet only 34% do.
Jonathan Webb, Head of Strategy Research at Procurement Leaders and the report's author, said: "We knew procurement had a significant role to play in helping to build the future product pipelines of their companies. Now we know how they should go about it, and the future potential is huge when you understand that some of our members expect more than a third of their product pipelines to come from SEI."
The research involved quantitative research and in-depth interviews among members of the Procurement Leaders community.
About Procurement Leaders:
Strategic procurement is essential for today's successful business. Which is why we dedicate ourselves to providing insight, connections and support to inspire progress in procurement.
Procurement Leaders serves senior procurement and supply chain executives from major worldwide corporations. By providing independent procurement intelligence, professional development and peer-to-peer networking, we enable procurement executives to add more value to their business by delivering savings faster, reducing risks and transforming functional performance.
SOURCE Procurement Leaders