History Illuminates Transformation – Brice Malm, Director of the Purchasing & Supply Chain Practice
31.03.2023
The evolution of Purchasing practices, the challenges, socio-economic contexts, training, and knowledge developed by researchers and key figures are essential for developing a function suited to the contemporary world.
By Brice Malm, Director of the Purchasing and Supply Chain practice at Grant Alexander, expert in human capital and Purchasing transformation
“In truth, these are only various facets of the same complex reality, so diverse are the profiles of professional buyers and the tasks entrusted to them” (Barreyre, 2010). Pierre-Yves Barreyre emphasizes that the Purchasing function and the role of buyers are constantly evolving. Initially focused on cost reduction and operational improvement, buyers then participated more actively in implementing new management models and developed a culture of supplier performance, contributing to the extended enterprise¹.
Today, buyers are actors in an ecosystem including consumers, suppliers, associations, and NGOs, all at the same level in addressing major challenges. The challenge for the function is to continue progressing, maintaining responsibility while integrating new forms of work, business models, and awareness of individual and collective responsibility.
Hence, this new column will offer a selective chronological review of key milestones that have shaped the Purchasing function.
1887: First book dedicated to Purchasing
Authored by M. Kirkamn, head of the audit department at Chicago and North Western Railway, it demonstrated the importance of Purchasing for companies involved in building U.S. railway lines².
1916: Henri Fayol
The famous French mining engineer identified purchasing as one of six essential operations for business success. For him, Purchasing is as important as Sales³.
1945: Creation of the CDAF
The Compagnie des Acheteurs de France (CDAF) was established, driving the development of professional buyers. In 1949, it created the ESAP, École Supérieure des Acheteurs Professionnels, now the Conseil National des Achats (CNA), with over 18,000 members. In 1974, in partnership with a Grenoble university institute, a continuing education program for Purchasing engineers was launched, leading to the first Master in Strategic Purchasing Management (DESMA).
1964: First Public Procurement Code
Public Procurement adopted its first code, establishing rules for awarding and executing contracts, based on three principles: free access to public procurement, equal treatment of candidates, and procedural transparency.
1965: Structuring of Scientific Research
Buyers discovered the first issue of the Journal of Purchasing, specialized in Purchasing and Supply Management, created by NAPA (National of Purchasing Agents), later NAPM, now ISM (Institute for Supply Management).
1975: Michael Porter repositions Purchasing
Michael E. Porter⁴ highlighted the evolution of Purchasing beyond administrative roles to become strategic. Purchasing is now the company’s pivot, contributing to value creation and competitive advantage.
1983: Kraljic’s seminal article
Harvard Business Review published KRALJIC’s major article, “Purchasing must become supply chain management,” introducing the famous Kraljic matrix. Purchases are classified along two axes: impact on profit and procurement risk level.
1993: First French professional magazine dedicated to Purchasing
In May 1993, La Lettre des Achats appeared, focusing exclusively on Purchasing management and supplier relationship best practices. Four years later, Décision Achats was launched. That same year, F. De Champeyrol published Les Achats in the Que sais-je series⁵.
2009: Creation of the SAE
Decree No. 2009-300 of March 17, 2009, established the SAE: the French State Purchasing Service⁶.
2015: Nobel laureates report on public procurement
Public procurement was highlighted by Stéphane Saussier and Jean Tirole, Nobel laureates in Economics, emphasizing the need to “Strengthen public procurement efficiency.” Representing 15% of GDP, it is a major budgetary concern.
Through this selective chronology, the history of Purchasing offers an inexhaustible source of development, allowing buyers to reinterpret the present and envision the future.
Excerpt adapted from Brice Malm – Fonction Achats et management des ressources externes – Éditions EMS, Pratiques d’entreprise Collection.
Article by Brice Malm, Director of the Purchasing and Supply Chain practice, for Profession Achats of the Conseil National des Achats.
¹ The extended enterprise revolves around a pivot organization connected to aligned subcontractors within the same value chain.
² As early as 1850, railway development revealed the key position of this function (Fearon, 1968).
³ Henri Fayol (1841-1925), civil engineer and author of Administration industrielle et générale (1916), recognized that “knowing how to buy and sell is as important as knowing how to manufacture well.”
⁴ “Buyers and suppliers are two of the five forces shaping industrial competition” (Porter, 1975).
⁵ The modernity of Purchasing reflects the modernity of the enterprise, affirming it as a management and operational responsibility function.
⁶ The DAE (ex-SAE) aims to optimize state purchases while respecting sustainable development and social objectives, fostering innovation access, and supporting SMEs.