Purchasing Performance

In recent years, it has become clear that the Purchasing department does more than just look for low prices. It has to contribute to the company’s overall performance in response to objectives that can be contradictory: reducing expenses while encouraging the decarbonization of its operations, improving quality and delivery times while incorporating CSR criteria. Strategic purchasing management then becomes a complex task, requiring expertise and sophisticated decision-making tools to deal with the new economic and ecological realities. 

The acceleration of major industrial programmes and the rapid increase in production rates in several sectors are having an impact on the projected needs for raw materials and technologies. Securing supplies therefore requires the long-term loyalty of reliable, high-performance suppliers, as well as diversifying supply sources, which includes integrating new players. Buyers should therefore explore alternative markets, ideally those that are geographically closer to the production centres, to ensure the resilience of the entire value chain.  

Purchasing Managers play a crucial role in reducing the environmental footprint of companies. Working with the Supply Chain department, they are at the forefront of meeting the requirements of regulations such as CSRD, CS3D, the Sapin 2 law, etc. Evaluating suppliers’ CSR practices, managing indirect emissions (Scope 3) and striving for financial performance must be carefully balanced to align sustainability and profitability. 

In addition to reducing costs, the Purchasing department is also a vector for improving the added value of products when it explores new materials, technologies and processes in partnership with R&D teams. Whether it’s through optimizing packaging, integrating sustainable materials or collaborating with suppliers on ground-breaking solutions, Purchasing can make a direct contribution to improving sales and enhancing the customer experience. 

Digitalization is one of the strategic priorities of Purchasing Directors, with multiple gains to be made: simplifying and harmonising, processes, operational efficiency, improving supplier relations, managing expenses, etc. Digital transformation, which is often requested and expected by Purchasing teams, requires a tried and tested methodology, which Avencore provides: digital maturity diagnosis, co-construction of the digital strategy and a progressive action plan, identifying relevant use cases, selecting the appropriate technologies, support for change management to facilitate the transition to a larger scale.