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 Subject : Re:Re:Re:Procurement/Vendor Management Reporting Structure.. 06/09/2020 06:25:43 PM 
Ms. Jeannine Anderson
Posts: 9
Hello Aaron. As you suggest there is variation in reporting. I have observed the corporate culture and leadership expectations can influence the reporting structure of Strategic Sourcing and Vendor Management. I have been in one organization where the Sourcing role and team reported to IS, and then moved to Supply Chain (Finance pillar). There is no right answer. I have come to see it as what is the value leadership expects of Sourcing or Vendor Management and how will the value be accomplished. If the CFO has a keen interest in sourcing and vendor management a finance department reporting is likely. If the IT department desires strategic sourcing and vendor management expertise and discipline it may be an IT department. Other reporting such as enterprise or shared services may be right if the corporate structure tends to have shared corporate services in one location. Then the question is do the shared corporate services report to CFO or COO or similar. I have found reporting that does not align to corporate and leadership values and expectations are more challenging that which department or division I report.
 Subject : Re:Re:Procurement/Vendor Management Reporting Structure.. 06/09/2020 04:59:27 PM 
Roy Schleiden
Posts: 36
Location: Kansas City MO USA
All -

The answer, it depends. Procurement typically sits under Finance (CFO). If there is also a VM organization, it can sit in Finance, IT(CIO), Operations (more neutral place), or under Procurement.

Sometimes organizations have part of the procurement organization sit in IT and also place VM there because of a high number of critical contracts.

I was in a large F500 trucking company where VM sat in a services organization that provided services across the company.

So it really becomes who is most going to use VM, Sourcing, and what type of independence you want VM and Procurement to have.

Have a Great Procurement Day
 Subject : Re:Re:Procurement/Vendor Management Reporting Structure.. 06/09/2020 04:54:32 PM 
Ms. Joani Scott CTPE
Posts: 4
We manage procurement and vendor management for approx. $50M in highly regulated spend. As of today, we report to the CFO, but we've tossed around reporting to our Chief Compliance Office.
 Subject : Re:Procurement/Vendor Management Reporting Structure.. 06/09/2020 04:50:19 PM 
Jeff Simpson
Posts: 17
In my current organization I am part of the IT Department and have the role of Vendor Relationship Manager. I also oversee IT Procurement. We are under the umbrella of IT Operations and that rolls up to our CIO. Most of the work I do is for IT stakeholders but I also work with other departments when they are looking to implement a new vendor or solution with an IT component.

In my previous company, Vendor Management and Procurement were part of an Enterprise Services group rolling up to the Director of that area. In that company (Property/Casualty Insurance) we worked with stakeholders across the organization regarding Vendor Management and Procurement.

 Subject : Re:Procurement/Vendor Management Reporting Structure.. 06/09/2020 04:33:25 PM 
Jeff Bater
Posts: 4
Very good question. I am also interested in where others have positioned these.
 Subject : Procurement/Vendor Management Reporting Structure.. 06/09/2020 04:17:55 PM 
Aaron Sparks
Posts: 6
I'm looking for input from the group on where your organization has positioned the Procurement/Vendor Management function in the organizational hierarchy, and who the executive owner is (i.e. CIO, CFO, COO, etc.).
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