A comprehensive guide for any C-level executive looking to gain a deeper understanding of procurement and sourcing. This guide covers why procurement is your most valuable asset, why it is difficult to master, how to spot the signs of savings opportunities and how to get the most out of your spend asset.
We believe that companies should view their procurement spend as a kind of asset. It may not show up on the balance sheet, but it has the potential to generate a return that is equal to or greater than other assets such as equipment or intellectual capital.
When a company negotiates pricing and terms once every three years or so in any one category of expenditure, they are essentially walking onto an uneven playing field. They arecompeting for margin against experts that generally have better data than their customers and certainly have greater market visibility.