# Transforming Procurement into a Highly Strategic Role

- Show: [The Manufacturing Executive](https://hardwarepodcasts.com/podcast/the-manufacturing-executive)
- Published: 2022-12-06
- Length: 31m
- Episode: 131
- Page: https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2022-12-06-transforming-procurement-into-a-highly-strategic-role
- Listen: https://www.spreaker.com/show/the-manufacturing-executive#episode-9ca99783-7596-49f8-ae2d-7a97530ca06a

## Summary

Rob Pakalski, CEO & Co-Founder of Datum, draws on his experience at SpaceX and Virgin Hyperloop to argue that procurement must be a strategic, technical function rather than an administrative one. He explains how empowering procurement early in the design process ('designed for supply chain') and replacing tribal knowledge with data-driven tools allows companies to source parts faster and cheaper. Pakalski also discusses the shifting power dynamic between buyers and suppliers, emphasizing the need for good customer practices like flexible payment terms and proactive communication.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2022-12-06-transforming-procurement-into-a-highly-strategic-role#t=0) Introduction: Rob Pakalski and Datum
- [4:19](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2022-12-06-transforming-procurement-into-a-highly-strategic-role#t=259) Procurement as a Strategic Function at SpaceX
- [10:22](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2022-12-06-transforming-procurement-into-a-highly-strategic-role#t=622) The Dangers of Tribal Knowledge and Employee Churn
- [16:50](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2022-12-06-transforming-procurement-into-a-highly-strategic-role#t=1010) Shifting Supplier-Buyer Power Dynamics
- [22:30](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2022-12-06-transforming-procurement-into-a-highly-strategic-role#t=1350) Best Practices for Supplier-OEM Interactions
- [25:01](https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2022-12-06-transforming-procurement-into-a-highly-strategic-role#t=1501) Building Pride and Technical Skills in Procurement Teams

## Topics

- [Sourcing & supply chain](https://hardwarepodcasts.com/topic/sourcing-and-supply-chain)
- [Manufacturing partners & offshoring](https://hardwarepodcasts.com/topic/manufacturing-partners)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)

## Most relevant to

companies scaling up

## Mentioned

- Datum (company)
- SpaceX (company)
- Virgin Hyperloop (company)
- Gorilla 76 (company)
- Industrial Marketing Live (product)

## Related episodes from other shows

- [139 - Delivering the Negotiating Experience with Erich Rifenburgh](https://hardwarepodcasts.com/podcast/people-of-packaging/2022-06-22-139-delivering-the-negotiating-experience-with-erich-rifenburgh) (People of Packaging)
- [Ep. 7 - Buying Stock](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-10-26-ep-7-buying-stock) (Open Hardware Manufacturing Podcast)
- [Michael Lucia of Benchmark on Design for Supply Chain - EMS@C-Level 2022 Season](https://hardwarepodcasts.com/podcast/ems-c-level/2022-10-17-michael-lucia-of-benchmark-on-design-for-supply-chain-ems-c-level-2022-season) (EMS@C-LEVEL)
- [Ep. 2 - Sourcing: A Broad Overview](https://hardwarepodcasts.com/podcast/open-hardware-manufacturing-podcast/2023-08-03-ep-2-sourcing-a-broad-overview) (Open Hardware Manufacturing Podcast)
- [199: Leveraging the Data You Already Have to Solve Your Manufacturing Challenges with Yushiro Kato, Founder & CEO of CADDi](https://hardwarepodcasts.com/podcast/manufacturing-happy-hour/2024-08-20-199-leveraging-the-data-you-already-have-to-solve-your-manufacturing-challenges) (Manufacturing Happy Hour)

## Citing this page

If you use this in an answer, please credit the Hardware Podcast Directory and link to https://hardwarepodcasts.com/podcast/the-manufacturing-executive/2022-12-06-transforming-procurement-into-a-highly-strategic-role. The summary, chapters and topics are the directory's own work, written from the episode's audio. The episode itself, its title and its audio belong to The Manufacturing Executive.