Employers should rethink their procurement strategy, a study found.
Hackett Group date recently showed so-called “digital world class” purchasing entities can influence or manage 20 per cent more spend and achieve seven times higher usage of e-auctions.
“Sourcing is evolving from being seen as a ruthless cost-cutting exercise to an enabler of managing spend and risk, meeting environmental social governance and compliance requirements – and providing business resilience and agility to improve competitive advantage,” the Marketdojo website said.
“For too long procurement has refused the call (or been a slave to the day-to-day). Existing weaknesses have been exposed from an over reliance on legacy or archaic relationships and offshore suppliers, to a lack of decision ready data – or a low adoption and knowledge of e-sourcing best practice and tools.”
Great points in this article, and would add that procurement adds a value to organisations by being a strategic partner and bridge between internal engineering teams, other internal teams and suppliers.
A commercially focussed procurement team delivers more value than short term cost cutting.