Procurement has been faced with fundamental changes of the business environment over the last few years and from my point of view there is one decisive factor to turn threads into opportunities: people.
Today, Total Cost of Ownership (TCO) is a constituent of every procurement textbook and used by professional category managers as a methodology and philosophy which looks beyond the price of a purchase to include many other costs along the entire life-cycle of a product or service.
The use of information technologies can both free up procurement professionals’ time from transactional activities and, indirectly, can help them recognise the strategic aspects of some procurement activities that feed into strategic sourcing.
Often the pressure to seek innovation from our external supply base comes from senior leadership, often the CEO. A recent request prompted me to ask my colleagues and see if there was common approach to the topic.
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