Just as the risks, challenges, and opportunities that define the global procurement landscape exist in a constant state of change and transformation, so too do the strategies and techniques procurement functions need to survive and thrive. The world turns and you must turn with it.
“Procurement excellence is not a static idea,” says Heleen Du Toit, Vice President of Global Rigids Packaging Procurement at global leader in convenient foods and beverages, PepsiCo. Through a portfolio that includes the Lay’s, Doritos, Cheetos, Gatorade, Pepsi, Mountain Dew, Quaker and SodaStream brands, PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. The process of procuring the raw materials, equipment, services, and other vital elements underpinning the PepsiCo value chain is a complex process — ever-evolving to meet the changing demands of the procurement landscape. It demands procurement excellence — the definition of which is constantly being rewritten.
“Procurement excellence is about how entrepreneurial and innovative you can be in constantly employing new strategies to deliver transformation in the procurement agenda of your business,” continues Du Toit. “Yesterday we were placing purchase orders, today we are using generative AI to drive intelligent buying exercises. Yesterday we were bartering for a better deal, today we are dismantling value chains for more intricate value mining.”
Throughout many industries, the demands being placed on procurement teams are changing. The function is stepping away from the back office and into the boardroom as its potential to deliver more than just cost containment is recognised. Procurement is a key growth enabler for businesses willing to invest in its transition from a simple purchasing function to a strategic enabler of business objectives.
We sat down with Du Toit to discuss the shifting procurement landscape and PepsiCo’s own strategic procurement transformation.
Click here to read the full story in Issue 53 of CPOstrategy!
