{"id":3477,"date":"2015-12-08T15:19:43","date_gmt":"2015-12-08T15:19:43","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2015\/12\/08\/procurement-from-cost-reduction-to-value-creation\/"},"modified":"2021-07-14T10:34:24","modified_gmt":"2021-07-14T14:34:24","slug":"procurement-from-cost-reduction-to-value-creation","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/procurement-from-cost-reduction-to-value-creation\/","title":{"rendered":"Procurement:  From Cost Reduction To Value Creation"},"content":{"rendered":"<p>I hope that you have enjoyed the article \u201cProcurement Cost Reductions Maxed Out?\u201d<\/p>\n<p>Don\u2019t miss updates on Procurement &amp; Supply Chain, Subscribe here!<\/p>\n<p>Now, I know for some that the idea of a procurement department not primarily focusing on cost reductions sounds strange.\u00a0 Many procurement professionals and leaders consider cost reductions to be the <em>raison d\u2019etre<\/em> of a procurement department.<\/p>\n<p>And, until a procurement department approaches maturity, cost reductions <em>should<\/em> be a big focus of the procurement department.\u00a0 But, as visionaries, we have to look beyond what drives us today to what will drive us tomorrow.<\/p>\n<p>We have to ask the question:\u00a0 Once we have 100% of recurring spend under contract and savings is optimized, then what?<\/p>\n<p>And that\u2019s where the shift to a value creation mindset needs to come into play.\u00a0 And that value creation specifically relates to things that procurement can do to help the company\u2019s sales grow.<\/p>\n<p>So, allow me to take this opportunity to reiterate some of the ways mentioned in the article for procurement to grow revenue and for me to expand upon the ideas:<\/p>\n<ul>\n<li><strong>Improving Quality:<\/strong>\u00a0 A higher-quality product or service can inspire customers to choose to do business with your company instead of your competitors.\u00a0 By working with the supply base to improve quality of inputs, your organization can produce higher-quality outputs that attract consumer favor, thus growing your company\u2019s sales by gobbling up market share.<\/li>\n<li><strong>Speed To Market:\u00a0<\/strong> By being first to the market with a new product or service, your company can be the first to come to mind when a consumer wants that type of product or service.\u00a0 A company cannot sell its product or service if it is not ready to be sold and receiving purchased products and services are often on the \u201ccritical path\u201d that most heavily influences when a product or service is ready for market.\u00a0 (NOTE:\u00a0 Unfamiliar with the term \u201ccritical path?\u201d\u00a0 Consider enrolling in our online course, \u201cProfessional Purchasing Project Management\u201d to learn about all aspects of completing purchasing projects on time)<\/li>\n<li><strong>Introducing a New Product\/Service:\u00a0<\/strong> It can be tough to get more consumers to buy an old product or service.\u00a0 Therefore, without new products or services, your company\u2019s sales can stall.\u00a0 But, by exchanging ideas with an innovative supply base, procurement can serve as a conduit for ways to identify opportunities to create something new that will add to your company\u2019s revenue stream.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>I hope that you have enjoyed the article \u201cProcurement Cost [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4051,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3477","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.4 (Yoast SEO v19.13) - 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