Revolution in purchasing: building competitive power through proactive purchasing

New concepts in the field of purchasing, such as outsourcing, supply-base management and value-chain management, have become increasingly common practice. Because of the cross-functional character of these concepts, the call for a strategic reorientation of the purchasing function becomes louder. However, a clear future vision to guide the purchasing process has not yet matured. We investigated the most prominent developments and the expected trends in the profession, as well as the role and position that purchasing is probably going to have in major companies ten years from now. This article will start with a description of the changing business context with which companies are currently confronted. This is followed by an overview of the purchasing and supply practices of leading-edge companies. We conclude with a model for future purchasing organizations to make simultaneous improvements both in increasing functional expertise and in horizontal synergy.