What are the “Four Ps of Procurement?"
The Four Ps represent the four crucial components in purchasing: people, priorities, partnerships and promotion.
We’ve made a concerted effort to develop new and better ways to think about and solve chronic procurement problems by focusing on these four areas.
Understanding the key problems in these categories will allow procurement professionals to function better in their roles and provide more strategic value to their organizations.
The Four Ps address some of the complaints and challenges that have affected procurement professionals for years:
- Lack of category expertise
- Inability to achieve buy-in from stakeholders and leaders
- Difficulties with data integrity
- Implementation challenges
- Lack of resources
- Need for greater ongoing management
- Continued lack of strategic importance placed on the procurement function
We believe the effects of these challenges can be found in four main areas:
- People: Ineffective talent recruitment and management
- Priorities: Misalignment of objectives
- Partnerships: A lack of focus beyond cost savings
- Promotion: An inability to fully market the worth of procurement
Addressing these four areas is crucial. Without doing so, procurement professionals will have an increasingly difficult time maintaining their relevance and bringing substantial value to their roles.To address the Four Ps in a way that will increase your value and demonstrate your strategic importance, read “The Four Ps of Procurement: Diagnosing and Treating the Real Challenges Facing the Profession.”