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	<title>People in Procurement - News and Comment &#187; big debate</title>
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		<title>The Big Debate: The internal customer problem</title>
		<link>http://news.peopleinprocurement.com/2009/03/11/the-big-debate-the-internal-customer-problem/</link>
		<comments>http://news.peopleinprocurement.com/2009/03/11/the-big-debate-the-internal-customer-problem/#comments</comments>
		<pubDate>Wed, 11 Mar 2009 13:19:35 +0000</pubDate>
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		<category><![CDATA[internal customers]]></category>

		<guid isPermaLink="false">http://sustainable-sourcing.com/peopleinprocurement/?p=22</guid>
		<description><![CDATA[When I first started in procurement I was confused by the use of the word "customer". It took several conversations with procurement professionals until I realised my mistake - in the world of procurement, the word has more than one meaning.]]></description>
			<content:encoded><![CDATA[<p>When I first started in procurement I was confused by the use of the word &#8220;customer&#8221;. It took several conversations with procurement professionals until I realised my mistake &#8211; in the world of procurement, the word has more than one meaning.</p>
<p>Most people I speak to in this profession refer to the internal business units who benefit from the work provided by the procurement function as &#8220;customers&#8221;.</p>
<p>But this immediately presents problems. It paints a picture of subservience to other areas of the business which puts procurement in a much weaker relative position. It gives internal business units the confidence to demand things which they would not be able to demand in a relationship of equals. And it lessens procurement&#8217;s strategic influence over the company as a whole.</p>
<p>Procurement brings to the business a huge amount of value. But too often it is seen as a poorer cousin to many other departments &#8211; whether this is production, research &amp; development, marketing, sales or finance. By referring to these other departments as &#8220;customers&#8221; or &#8220;clients&#8221; procurement leaders are allowing this skewed relationship to continue.</p>
<p>This also poses many implications for the image of procurement. What ambitious talent will be attracted to an area of the business which &#8220;serves&#8221; the rest of the organisation? They would be far more likely to be attracted to a position which engages with suppliers across the globe, which has a direct impact on the company&#8217;s bottom line and which manages corporate-wide projects.</p>
<p>Sound familiar?</p>
<p>To finally put procurement on the executive map, to increase its influence over key stakeholders and to increase its attractiveness as a career of choice, procurement leaders must stop referring to their equals as customers.</p>
<p>Because they are not customers &#8211; they are colleagues.</p>
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