One thing I don’t appreciate in procurement… the savings pressure. Because savings is NOT a strategy…it does not fit into the modern procurement concept anymore…
It’s often short-term, it targets the wrong issue, & it doesn’t build credibility over time!
A 20% discount today doesn’t mean we’ve helped the business tomorrow.
Savings should be a strategic weapon, not a daily obsession.
Because if all we do is push for discounts, we end up being poor negotiators & poor partners? Am I wrong?
Suppliers don’t want a client who keeps asking for special discounts.
They want a company they can grow with, win with & sometimes lose with.
And let’s not forget, today’s supplier could be our tomorrow’s client!
Procurement is bigger than numbers. It’s about:
– Building stronger supplier partnerships / Same as Sales building partners
– Managing risks before they hit us / the only way to manage the modern procurement
– Facilitating innovation & growth /. support in developing suppliers, focus on business growth not only short term savings. sometimes accept to lose for bigger wins..
– Making operations smoother / that’s top priority – a downtime can cost more than a simple good looking savings
– Supporting the business strategy / that should be KPI #1
Savings are just one outcome, they should not be THE strategy
If we stop there, we sell ourselves, our function and our company short.
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