„Procurement in the spotlight“
For Daniel Weise, procurement, a role that has long been underestimated, is the key to increasing competitiveness, with cost reductions, increased sustainability, reducing risk in supply chains and a capacity for innovation, quality and speed, all representing crucial issues for business leaders. That’s why his book, due to be published this summer, is called “Profit from the Source”. As a Global Topic Leader for Procurement at BCG, Daniel has been involved with INVERTO since it first became part of BCG, and he will drive our development even more actively in his new role as CEO.
Daniel, how did procurement become such a central issue for you, and what do you find particularly exciting about it?
I studied business administration at university. I came into contact with the subject quite early on in my time there and recognized my passion for it. I then wrote my thesis on electronic auctions in procurement, which was seen as a ‘new topic’ at that time. My first project after joining BCG in 2003 was also based in procurement. I’ve remained keen on this area ever since and I’m now responsible for it globally at BCG. What I find particularly exciting about procurement is the huge influence it has on a company’s success. Decisions made by procurement shape the course of a company for the long term.
What do you see as challenging for procurement right now?
Procurement is experiencing a fundamental paradigm shift . Previously, it was very cost driven. Buyers were trying to make savings and drive down prices. The current situation is dominated by raw material shortages, inflation, geopolitical tensions, and a growing awareness of sustainability in society.So merely optimizing costs is no longer enough. Aspects such as risk reduction, quality, speed, sustainability, and innovation are just as important for procurement, and they put the focus on suppliers more than ever before. More and more companies are recognizing this and are realigning procurement’s role accordingly. And it’s paying off.
What impact does that have on our work as consultants?
It makes our job at INVERTO even more exciting and varied, because we can use our extensive expertise to help our customers with these issues. Let’s take sustainability as an example: it’s just fun making the world a bit better! At the same time, our consulting approach has become more digital. We have more data available than ever before and so we can act more quickly, transparently, and effectively. Coronavirus has also changed our working model. The principle of “living out of a suitcase for days” no longer exists. We have various hybrid scenarios now, including working at the customer’s premises, from home, or at the office.
ORDER : PROFIT FROM THE SOURCE
‘Profit from the Source’ – the first-ever procurement book published by Harvard Business Review Press – is now available to order on Amazon!
Authored by our BCG-colleagues Christian Schuh, Wolfgang Schnellbächer, Alenka Triplat, and Daniel Weise, this book is intended as a paradigm-shifting wake-up call to leaders everywhere.
In these troubled times, the procurement function can help CEOs generate phenomenal value across critical sources of competitive advantage -and this book, structured around three building blocks and ten practical principles, constitutes a blueprint for our clients and company leaders to break away from the pack.
Order now
