QuoraUpdateCancelProcurement is a sub activity of supply chain so ideally procurement should report to Supply Chain Head.
A procurement manager can’t take sole decisions without the coordination of other relevant departments 16 Oct 2014 - “If you have strategic sourcing reporting to finance, what do you get? You get purchase price reduction. What else do you get? Nothing. You get .
For example, warehouse manager will inform procurment about the ROP & levels of inventory, inventory manager will coordinate with procurement in many decisions like when to buy and which quantity will be EOQ etc, production manager will coordinate about MPS so all these are inter-related activities of supply chain. Ideally a supply chain head is a person who possesses a 360 degree experience of supply chain. He might has been Procurement manger, inventory manager, Production planner, logistics coordinator, warehouse incharg while climbing his career ladder so he would be in position to better understand the issues, requirements, problems & dynamics of procurement as compared to a CFO or finance head.
So when procurement will report the Head of Supply chain there are higher chances of productivity, understanding, enhanced coordination & harmony 28 May 2015 - What did participants of our survey say when asked why procurement should report into finance? Find out here!.
Moreover Finance may have some issues with procurement and the relationship between finance & procurement is normally not stable as procurement focuses on supplier relationship by clearing their payments on time and releasing the funds for purchase on time but finance department normally tries to keep a strong control on fund release & normally tries to delay the clearance which is deemed as unnecessary by procurement department.
so if procurement is reporting to Head of Finance there may be compromised productivity of procurement The report will deliver concrete data and insight into several related areas of operations and maintenance for wind farms..
Answered 364w ago · Author has 57 answers and 53.
2k answer viewsIve seen a few models and I don't know which is best A bad house survey report can make or break a property deal. to the surveyor, you may feel reassured and informed enough to proceed with the purchase..
I think the head of supply chain is a very bad idea as you've instantly limited procurement to goods focus role. What about marketing/sales procurement?I think there are three places that make sense the CPO should report to- CEO- COONow the question of CEO or not I think depends on the strategic importance of procurement within the industry (a good indicator is the extent of capital investment especially bulky commitments).
Airlines are a good example where the failure to manage the purchasing of airplanes or outsourcing of maintenance can kill the company. Now assuming this isn't the case the question becomes one of how auditable margin is. Take for example the Telco industry where the selling of airtime in itself costs nothing, it's only at a top level where you can see the cost of the overhead and the resulting margin.
In this case I'd argue being under the CFO to provide an "independent" questioning of costs and value. as well providing coverage to the whole business.
Else under the COO To build strong relationships with the stakeholders Procurement should report to supply chain. If reporting to finance, they MAY be inclined to purchase based on least cost principle (lowest cost). However .
4k ViewsAnswered 127w ago · Author has 133 answers and 33.
7k answer viewsHead of supply chain, anything else would lead to a biase (cost if reporting to finance, Availability if reporting to operations) 20 Dec 2006 - Like the question that led up to the article “What Is Supply Chain Management, Anyway?“, I have commonly gotten questions like “To whom should Purchasing report?”. To simplify it, if the company sees Purchasing’s primary role as delivering cost savings, the company .
However just remember the 3 basics of purchasing, right product, right time, right price and it doesn't matter who you report to573 Views