DESIGNING FOR CHANGE – SUSTAINABLE DEVELOPMENT OF THE ORGANISATION

As a basic principle, every company should have Purchasing promptly negotiate all payments to third parties which exceed a specific amount. This ensures an organisational separation of purchasing (supplier selection) and procurement (ordering on the basis of negotiated terms).

There is no doubt that centralisation of the purchasing volume with simultaneous bundling of the purchasing volume increases negotiating power. The steps for centralising such tasks and the determination of which steps need to remain closely associated with the relevant specialist department can only be established on a specific company basis. There are also other questions to be answered: Who do the purchasers report to? Who is responsible for the functional management and direct management? Which committee(s) will make the contracting award decision?

Every improvement implies change, and this process should be supported by change management. Organisational developments in particular often fail because of personal feelings and interests unless an investment is made, early on, in facilitating the change and an open dialogue between all participants.

Many companies do not devote enough attention to the subject of training. Only highly motivated and fully trained employees can deliver peak performances. To create the optimum platform, all training concepts should therefore be developed on a specific company basis, and supervisors and senior management personnel should be included as mentors and speakers on individual subjects.