Understanding how human capital can positively impact on successful Procurement functions. Part 2

Introduction

This topic presented as a series of two overview sub- articles pragmatically explores the reasons why an empowered quality-based HC component, is vital to you the Procurement manager.
In article one we covered the impact of human capital on management and operational outcomes. In this second part we shall briefly focus on Internal Stakeholder & Vendor Perceptions and Product & Bottomline Impact

Point Three: Internal Stakeholder & Vendor Perceptions

Unfavourable departmental perceptions and image created primarily through poor relations with internal stakeholders and vendor bases can often be very challenging to rectify and can have a long-term negative effect on both department and associated careers. I have had personal bitter experience of this scenario with a prior employer, where Procurement had an exceptionally unflattering reputation.
Maintaining or improving perceptions and relations is imperative and attainable thru:
• Professional and objective support to all internal stakeholders, only achievable by a skilled, empowered results driven Procurement team.
• Developing vendor respect thru objective, timeous, benchmarked and transparency-based interactions and resolutions with the vendor base, also only achievable by a competent, confident, and empowered team of Procurement Professionals.
• The understanding of the overall Procurement objectives in relation to the overall corporate objectives, by all team members and knowing what their own role and importance to achieving those objectives are.
• By understanding these objectives, they can deliver qualitative based performance to both internal and external stakeholders alike.

Product & Bottomline Impact

Procurement is strategically positioned to strongly influence both production and end-product, and thus the corporate bottom-line and image. One of the best-known adverse examples is how a very badly managed Procurement function adversely effected corporate British Leyland and particularly its prestige product, the Jaguar marque, in the 1970s.
A skilled, professional, well managed Procurement team is always the answer, as without a competent human element no process, no matter how good, can function to its optimum efficiency.

Wrap up

Human Capital is the primary factor to the smooth running of any organisation. Procurement and its people are no exception. Procurement is a critical functionality of any modern organisation, state or corporate. Therefore, the personnel employed will always make a vital contribution to the success or failure of that Procurement function and to some degree the enterprise as a whole. Unless of course, technology completely replaces the Human Capital element, which outside sci-fi, is not feasible nor practical in the immediate to near future.