A previous blog, “Should Procurement Have a Seat at the Table?” is directly related to the question of organizational structure.
Consequently, the issue presented in the title to this blog is one that is loaded with emotion. Perhaps the best way to both defuse this emotion and determine manufacturing’s optimal procurement function reporting structure is by identifying and eliminating those functional areas that should definitely be avoided. Even if this process does not result in a “last man standing” scenario, it will certainly reduce the options.
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