Historically, procurement has focused too much on savings and not enough on revenue and growth - the true heartbeat of any competitive enterprise. Rather than trying to reposition savings as top line impact, procurement needs to insist upon more suitable performance metrics.
This insistence has to be backed by concrete examples of the spend categories procurement believes they can manage in such a way that it fuels corporate growth. If these categories have been ‘off limits’ in the past, procurement is going to have to make a results-driven pitch for access, followed by the delivery of measurable outcomes.
In this episode, based on an AOP Live session run in late 2021, Host Philip Ideson speaks with Greg Anderson and David Clevenger about what procurement needs to do differently in 2022 and beyond:
The importance of user experience, improved by breaking free from legacy thinking and out-of-date business models How procurement can connect company-wide value drivers with strategic supplier relationships to support sustained growth Why there may be more of an opportunity to move away from savings as the key procurement performance metric than we think