It is interesting, why acquisition departments still exist today?

The author: ale-Kadi Osama

Departments of acquisition which the good old concentration of bureaucrats on processes and systems operates, are intended to be lost and be replaced. More commercially concentrated function will replace old department of acquisition. This function will concentrate on adding value and will improve competitiveness of business, carrying on negotiations, buying and investigating the markets for the best sourcing possibilities.

I am amazed, that occupies such long time for departments of acquisition of the indirect goods and services to be lost and be replaced with the function named "commercial".

It seems, that the part of good old acquisition and business bureaucrats managed to hold this function live and healthy, spending hardly earned money of the company, trying to rescue it.

Actually some bureaucrats have gone much more further and have convinced the boards to develop the difficult decision for system of acquisition which they demand, will rescue the huge sum of money.

They even managed to convince their companies, that after they build this big system, they will save even more money, is possible to 50 percent if they use also the tool of e-acquisition which will automatically co-operate with all interested.

I do not say, that, creating it is system to buy is a bad thing or not necessary to operate homeless expenses and increase levers. I do not say, that creation of the decision of e-acquisition is not a good thing or that it does not saves time and money, especially buying printer and paper clip ink.

I simply ask, how many that economy and in what expense it is reached?

The full success of any department of acquisition certainly arrives from its ability to increase competitiveness of its organisation in the market. This success substantially arrives from this to be commercially concentrated department appearing directed outside, instead of system and operated the process, standing inside.

I think, building system, and buying a paper for printers, using e-acquisition tools it is necessary to leave to finance, to address. They usually know is better how to construct and operate computer system which deals with money.

When I worked over the House of Group of Fraser earlier in my career, the basic function of the organisation of the finance operated purchase and systems of conformity of the account. The purchasing department or as they name it in retail, department of the goods, was more interested in creation of affairs, research of products and the markets and managements of system of the goods to understand stock movement. The same department was resourced with very professional skilled buyers, intermediaries and dealers.

In indirect purchase of the goods and services, good old bureaucrats still support function, which was long transferred to finance in retail and the industrial world.

Such bureaucrats seem frightened collisions before the real world of negotiations, the difficult markets, dealing with suppliers, the markets and technology, creating relations and, most important, addressing with change.

Professionals who really go are necessary and promote full success and competitiveness of their companies in the market.

This time, I will not accuse the senior boards of management or the company, which have actually used the best efforts to create correct environment for acquisition department, to prosper, modernise and increase its levers.

Many companies centralised function of acquisition and have made its part of full management. Everything, that they have received in exchange, was a considerable quantity of requirements from their directors of acquisition to construct new systems. Company boards, apparently, hear now one pray from their directors of acquisition which goes something as it, “if you build it, the economy will arrive”. But the economy arrives?

You will never know, if you do not ask a correct question – how much your function brought in company’s everywhere competitive position in its market?

It is a commercial question which will be asked by the senior management and not system, and process was based by those. What do 60 percent depreciate really avaricious? It means nothing, if it not in comparison with other discounts given to other organisation by the same supplier in the same market. And not only, what, but also and, on what conditions business, is based and how long if this supplier, happens, is strategic?

Acquisition departments should move quickly before they will be moved by someone else. They should become commercially concentrated function resourced with very professional and commercially focused people who add value, increasing competitiveness of their organisation in the market.

At the same time they should leave the duties of administration of system before department of the finance. Eventually, the first problem of computers when they have been invented, consisted in processing on the computer the finance.

Эль-Kadi Osama is the main official of acquisition in Centrica

www.elkadiconsulting.com www.aason.com

About the Author

Эль-Kadi Osama the skilled and motivational speaker is negotiations. Spetsializiruet in use of the Sun Art Tzu of military strategy of negotiations in unique and advanced strategic consultation of negotiations, seminars, seminars and training to sales and purchase of the organisations all over the world.

Born 1955 in Manchester England Osama has received higher education in 1978 with BSC in the Economy accompanied by MUM in the International Business from the Alexandria University.
Osama the open-cast mine ale-Kadi covers 28 years within the Great Britain, based the reliable action the corporate companies. Start from the Computer Programmer of the Analyst in NCR, to the Main Architect for the international bank systems, to the Sales manager for Europe CAI, to Technology of the General director in the House of Group of Fraser (including Harrods), to supervising acquisition of group functions for Automobile Association (AA) through to its new position as the Main Official of Acquisition in Centrica Plc group of the companies in the Great Britain

http://www. ElkadiConsulting.com

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