What Is Procurement\u2019s \u201cTrump Card?\u201d<\/h3><\/div><\/div><\/div>PurchTips edition #367<\/p>\n<\/div>
What Is An Oft-Ignored Procurement Contribution?<\/h4><\/div><\/div><\/div>Fear not, the use of the word \u201ctrump\u201d in this article\u2019s title has nothing to do with the president-elect of the USA. The term \u201ctrump card\u201d refers to something with the potential to give someone a surprising, dramatic and persuasive advantage.<\/p>\n
In terms of communicating value to senior management, do you know what procurement\u2019s trump card is? Many would say it is cost savings. But cost savings is a well-documented \u2013 and expected \u2013 procurement contribution.<\/p>\n
I would argue that procurement\u2019s trump card is contribution to market share growth. Market share refers to your organization\u2019s sales as a percentage of all sales in the industry. Though cost savings is certainly a priority of executives in mature and declining organizations in stagnant economic times, market share growth is among the highest of priorities of executives in newer and growing organizations.<\/p>\n
To understand how procurement can contribute to market share growth, think about why your organization\u2019s customers buy from it rather than a competitor. Also, think about why others in the industry instead buy from competitors<\/p>\n
If they buy based on speed of availability, identify how you can get products and services from the supply base earlier to support faster fulfillment of your organization\u2019s orders. If they buy based on quality, identify how you can get higher quality inputs from the supply base so that your organization can provide higher quality outputs to its customers. If they buy based on innovativeness, identify ways to collect, vet and implement innovative ideas from the supply base.<\/p>\n
If procurement helps make the organization and its products and services more attractive to current and prospective customers, the strategic value to the organization could exceed that of cost savings. Market share, revenue, and profitability will all increase. That\u2019s powerful potential. And that is why market share growth is procurement\u2019s trump card.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Want A More Rewarding Procurement Career?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2021\/04\/career.jpg\" "\\"career\\"")
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Nothing will change unless you take action towards becoming a world-class procurement professional. Work your way up NLPA\u2019s CPO Suite Programs, an enhanced version of our SPSM certifications and bring the most modern procurement practices into your organization and achieve your career potential.<\/p>\n
Download our NLPA Course Catalog<\/strong> for a comprehensive list of the CPO Certification Programs and their corresponding modules per level.<\/p>\n<\/div>
PurchTips edition #367<\/p>\n<\/div>
What Is An Oft-Ignored Procurement Contribution?<\/h4><\/div><\/div><\/div>Fear not, the use of the word \u201ctrump\u201d in this article\u2019s title has nothing to do with the president-elect of the USA. The term \u201ctrump card\u201d refers to something with the potential to give someone a surprising, dramatic and persuasive advantage.<\/p>\n
In terms of communicating value to senior management, do you know what procurement\u2019s trump card is? Many would say it is cost savings. But cost savings is a well-documented \u2013 and expected \u2013 procurement contribution.<\/p>\n
I would argue that procurement\u2019s trump card is contribution to market share growth. Market share refers to your organization\u2019s sales as a percentage of all sales in the industry. Though cost savings is certainly a priority of executives in mature and declining organizations in stagnant economic times, market share growth is among the highest of priorities of executives in newer and growing organizations.<\/p>\n
To understand how procurement can contribute to market share growth, think about why your organization\u2019s customers buy from it rather than a competitor. Also, think about why others in the industry instead buy from competitors<\/p>\n
If they buy based on speed of availability, identify how you can get products and services from the supply base earlier to support faster fulfillment of your organization\u2019s orders. If they buy based on quality, identify how you can get higher quality inputs from the supply base so that your organization can provide higher quality outputs to its customers. If they buy based on innovativeness, identify ways to collect, vet and implement innovative ideas from the supply base.<\/p>\n
If procurement helps make the organization and its products and services more attractive to current and prospective customers, the strategic value to the organization could exceed that of cost savings. Market share, revenue, and profitability will all increase. That\u2019s powerful potential. And that is why market share growth is procurement\u2019s trump card.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Want A More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Nothing will change unless you take action towards becoming a world-class procurement professional. Work your way up NLPA\u2019s CPO Suite Programs, an enhanced version of our SPSM certifications and bring the most modern procurement practices into your organization and achieve your career potential.<\/p>\n
Download our NLPA Course Catalog<\/strong> for a comprehensive list of the CPO Certification Programs and their corresponding modules per level.<\/p>\n<\/div>
Fear not, the use of the word \u201ctrump\u201d in this article\u2019s title has nothing to do with the president-elect of the USA. The term \u201ctrump card\u201d refers to something with the potential to give someone a surprising, dramatic and persuasive advantage.<\/p>\n
In terms of communicating value to senior management, do you know what procurement\u2019s trump card is? Many would say it is cost savings. But cost savings is a well-documented \u2013 and expected \u2013 procurement contribution.<\/p>\n
I would argue that procurement\u2019s trump card is contribution to market share growth. Market share refers to your organization\u2019s sales as a percentage of all sales in the industry. Though cost savings is certainly a priority of executives in mature and declining organizations in stagnant economic times, market share growth is among the highest of priorities of executives in newer and growing organizations.<\/p>\n
To understand how procurement can contribute to market share growth, think about why your organization\u2019s customers buy from it rather than a competitor. Also, think about why others in the industry instead buy from competitors<\/p>\n
If they buy based on speed of availability, identify how you can get products and services from the supply base earlier to support faster fulfillment of your organization\u2019s orders. If they buy based on quality, identify how you can get higher quality inputs from the supply base so that your organization can provide higher quality outputs to its customers. If they buy based on innovativeness, identify ways to collect, vet and implement innovative ideas from the supply base.<\/p>\n
If procurement helps make the organization and its products and services more attractive to current and prospective customers, the strategic value to the organization could exceed that of cost savings. Market share, revenue, and profitability will all increase. That\u2019s powerful potential. And that is why market share growth is procurement\u2019s trump card.<\/p>\n<\/div><\/div><\/div><\/div><\/div>
Want A More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Nothing will change unless you take action towards becoming a world-class procurement professional. Work your way up NLPA\u2019s CPO Suite Programs, an enhanced version of our SPSM certifications and bring the most modern procurement practices into your organization and achieve your career potential.<\/p>\n
Download our NLPA Course Catalog<\/strong> for a comprehensive list of the CPO Certification Programs and their corresponding modules per level.<\/p>\n<\/div>
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Nothing will change unless you take action towards becoming a world-class procurement professional. Work your way up NLPA\u2019s CPO Suite Programs, an enhanced version of our SPSM certifications and bring the most modern procurement practices into your organization and achieve your career potential.<\/p>\n
Download our NLPA Course Catalog<\/strong> for a comprehensive list of the CPO Certification Programs and their corresponding modules per level.<\/p>\n<\/div>