In the industry, procurement and logistics are better developed than in other sectors. However, Emeritor sees new developments that are new challenges for production/manufacturing companies. Procurement becomes more abstract and requires more management. That is why Emeritor gives more attention to multidisciplinary collaboration with suppliers and procurement of knowledge-intensive products.
Procurement becomes less tangible
Procurement in the industry sector becomes more abstract. This has two reasons:
- Increased modular procurement
Fewer components and more modules are being procured, or even complete (OEM) products. The amount of delivered goods decreases and the communication regarding delivered products increases. This effect is enhanced by the large number of companies that are developing as project organisations.
- By increased outsourcing, more services are being procured
Not only general and technical services, but temporary personnel, outsourced work and engineering as well. These services are not located within the company and are thus less tangible and require proper agreements.
Result: increased need of management
The ‘abstract’ procurement in the industry sector requires even more management. There are more suppliers who contribute to the final product. Price and availability become of secondary importance and attention is given to multidisciplinary collaboration.
This requires different demands from the procurement function or department. When a company stops focusing on production of large quantities, but rather focuses on knowledge-intensive products, the procurement department cannot fall behind. Procurement in the industry is starting to resemble that of the service sector more and more. This is characterised by a decentralized character and attention for the correct execution of activities.