Since the 1980's industrial buying has gone from getting three quotes and executing a three-part carbon paper Purchase Order typed on an IBM Selectric typewriter, to a sophisticated electronic environment where information is available at the buyer's computer command.  With the introduction of ERP systems buyers can now assemble historical buy information, supplier history and performance, develop RFPs, RFQs and enable reverse auctions.  Electronically, buyers can exchange offers with suppliers and transmit Purchase Orders via EDI.  Procurement is now taught at the undergraduate and graduate levels as part of Supply Chain Management programs at universities around the world.  Students emerging from graduate programs are more strategic thinkers and have a much broader understanding of business as ecosystems.

Over the past 25 years, I have seen many changes in the procurement field. Here are a few…

1980’s
- Arms length business relationship (our-side vs your side)
- Initial software with purchasing systems that automate POs
- Use of learning-curve theory to drive down pricing year over year
- $1000 government toilet seats and $75 ashtrays because these things required “R&D”
- Vendor entertainment, gifts (bribes?), personal relationships off the books

1990’s
- Win-Win approach to negotiation
- Emergence of purchasing modules in ERP systems
- Title changes from Buyer and Purchasing Agent to Procurement Manager
- Use of consultants to help with spend analysis
- Increased acknowledgement of Procurement as a part of the broader Supply Chain

2000’s
- Adding value to negotiations through trades
- Non-production spend analysis and solutions
- Control over maverick buys through software
- China sourcing (low cost country sourcing and production
- Coordination across the Supply Chain