Special Roundtable Discussion Procurement’s Potential Continues to Expand
Special Roundtable Discussion
Procurement’s Potential
Continues to Expand
Perspectives from the Next Generation
Procurement is about more than simply sourcing what a business needs. In this feature, we bring together four employees who have participated in activities beyond their day-to-day responsibilities, including last year’s Procurement Networking Event and the launch of a procurement recruitment website, to discuss the expanding scope of procurement and its future potential.
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- Procurement Planning Group,
SCM Department,
Value Chain Headquarters
Koji Sakaguchi - Involved in visualization and enhancement for procurement processes. Participates in discussions related to AI utilization to pursue new advances in data-driven procurement.
- Procurement Planning Group,
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- Procurement Section B,
Procurement Department,
Steam Power Business Division,
Energy Systems
Kota Takimoto - Oversees construction contracts, working to improve negotiations and profitability for large-scale projects. Feels the true essence of procurement that helps drive entire businesses.
- Procurement Section B,
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- Procurement Group,
Procurement Center,
Mitsubishi Heavy Industries Compressor Corporation
Natsuko Yamanouchi - Oversees component procurement, working to build relationships with suppliers to ensure stable supply. Involved in the development plan and presentations for the Procurement Networking event, which broadened her horizons.
- Procurement Group,
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- Procurement Planning Group,
Procurement Department,
Mitsubishi Shipbuilding Co., Ltd.
Naoya Hamada - Involved in initiatives to forge a stronger foundation for joint logistics management and information-sharing. Having contributed to launching a new recruitment website, works to communicate the appeal of procurement in new ways.
- Procurement Planning Group,
Putting Procurement into Words Reveals Its Importance
[Takimoto]
I participated in last year’s networking event because I wanted to learn how colleagues of my generation in other departments and business units approach procurement and what motivates them. What impressed me most was that, despite how busy everyone was, they were genuinely committed to making the Group better as a whole. I found that very inspiring.
[Yamanouchi]
I know exactly what you mean. There wasn’t a ready-made blueprint to follow. In our day-to-day work, the tasks and processes are fairly well defined, but planning the event gave us much more freedom. It felt like we were creating something ourselves as we went along.
[Sakaguchi]
I felt the same way. I participated in an ideathon on AI utilization, and while some of the challenges discussed were what I expected, others gave me completely new perspectives. It made me realize that even within procurement, people can see things very differently depending on their roles.
[Yamanouchi]
It also made me realize that I wasn’t the only one facing those challenges.
[Hamada]
I was involved in launching the recruitment website. Roles such as sales and HR are easy for people to imagine, but procurement is often harder to understand. That’s why I felt it was important to help communicate what procurement is really about.
[Sakaguchi]
I think it’s particularly difficult for students to picture.
[Hamada]
While developing content for the website, I was reminded once again of how much procurement both drives and supports projects.
Procurement Is More Than Just Placing Orders
[Sakaguchi]
Given today’s environment, particularly in areas such as petroleum products and semiconductors, we can no longer assume that the materials and components we need will always be readily available. Procurement is no longer as simple as issuing a purchase order and considering the job done.
[Takimoto]
That’s certainly true.
[Sakaguchi]
When a raw-material shortage once threatened to disrupt supply, we looked beyond our direct suppliers. We gathered information from trading companies and raw-material manufacturers, searched for alternatives, and worked closely with the design and quality assurance departments. That experience reinforced my belief that procurement’s responsibility extends all the way to ensuring that the necessary parts reach the production site.
[Hamada]
My joint logistics initiative may seem, at first glance, to fall outside the traditional scope of procurement. In fact, it is an initiative that directly benefits suppliers. However, by improving transportation efficiency and facilitating information sharing, it strengthens the supply chain as a whole, which ultimately helps stabilize our own manufacturing operations. Procurement is not a function that begins and ends with issuing purchase orders.
[Yamanouchi]
Being on the buyer’s side doesn’t mean we should simply impose strict conditions. Procurement isn’t simply about securing the lowest possible cost. If we place excessive demands on our suppliers, we could ultimately undermine the stability of the entire supply chain in the long run.
[Hamada]
Absolutely. Ideally, we should strive for win-win relationships.
[Yamanouchi]
Manufacturing depends on the support of many partner companies. That’s why I always ask myself whether I’m demanding too much.
[Takimoto]
I feel the same way in construction contracts. The outcome of negotiations has a direct impact on project profitability. That’s why it’s important to review suppliers’ quotations carefully, identify areas for improvement, and develop a negotiation strategy. Only then can you engage in tough negotiations. At the same time, there is little value in achieving results if the relationship suffers. I believe procurement is about connecting people inside and outside the company to find the best possible solutions.
[Sakaguchi]
Going forward, I want to improve the visibility of procurement processes. To do that, I’d like to deepen my knowledge not only of procurement workflows, but also of IT and digital transformation. By making data more visible, I hope we can make procurement itself even better.
What We Hope to Achieve and the Skills We Want to Build
[Takimoto]
I’ve recently taken on a management role, which has shifted my focus from delivering results as an individual to thinking about how I can improve the performance of the entire team. I don’t want to simply pass down instructions from above. I want to bring my own perspective and make my own contribution.
[Yamanouchi]
I’ve learned how rewarding it can be to take the initiative and create something new from the ground up. Of course, it’s important to keep our day-to-day operations running smoothly, but I’d also like to stay alert to new developments and become more involved in proposing and launching new initiatives.
[Hamada]
I’d like to further expand our initiatives in joint logistics and information sharing. Through procurement, I want to help build a stable foundation for the shipbuilding and marine machinery industries as a whole. Personally, I’d also like to learn more about new systems and tools.
[Takimoto]
I wonder how things will evolve. In some businesses, material costs account for around 70 percent of total costs, and procurement is responsible for those materials. In that sense, procurement is a function at the very core of the business. As AI and automation reduce routine work, I believe procurement will be able to do even more, making the job increasingly rewarding and full of new possibilities.
[Yamanouchi]
If that happens, we may be able to spend even more time interacting directly with people.
[Hamada]
I think we’ll move closer to relationships where everyone works together to create value, rather than simply being buyers and sellers.
[Sakaguchi]
Greater efficiency and standardization will be important, but in the end, people will still be the ones who create value.
Closing Thoughts
MHI Group’s competitiveness cannot be strengthened without the expertise, analytical capabilities, and negotiation skills of its procurement professionals. As the external environment becomes increasingly complex, the role of procurement continues to evolve, becoming more sophisticated and more impactful.
By bringing together the strengths of both our organization and our people, we will continue to support the Group’s sustainable growth.