Centralising procurement with technology
Johnson & Johnson ’ s Global Chief Procurement Officer ( CPO ), Leonardo DeCandia , reflects on the company ’ s centralisation of procurement in its operations
WRITTEN BY : GEORGIA WILSON
Procurement in ‘ the era of digitalisation and massive inflows of data ’ stands on the precipice of a digital revolution . The greatest opportunities to utilise the insights generated from such digital solutions to advance strategic contributions are happening right now .
The Global Chief Procurement Officer ( CPO ) of Johnson & Johnson , Leonardo ( Len ) DeCandia , believes digitalisation is an opportunity for procurement to contribute beyond its traditional scope of supplier-led innovation , customer-centric services , and reputation enhancement .
Decentralised procurement becomes an enterprise function Historically , Johnson & Johnson has been comprised of three core businesses : consumer health ; pharmaceuticals - its largest business ; and medical devices . Operating for over 130 years , its business functions - such as procurement - had a history of being decentralised . But that is all changing .
DeCandia explains : “ About six years ago , we recognised that more strategic value could come from procurement if it was better managed as an enterprise function . We looked at our governance responsibilities around the world and how we could conduct these in a more harmonised , collective way . Johnson & Johnson was one of the early adopters of strategic sourcing .”
86 May 2022