In procurement, we celebrate the achievement of\u00a0cost savings. \u00a0Like when we conduct strategic sourcing or engage in a negotiation and end up paying a lower price for a product or service than we did last year.<\/p>\n
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Of course, that\u2019s great. \u00a0And, instinctively, we know that our cost savings helps our organization.<\/p>\n
But, it\u2019s not enough to know that cost savings helps our organization.<\/p>\n
We need to take things to the next level and understand how<\/em> cost savings helps our organization. \u00a0Where do these millions of dollars in cost savings go?<\/p>\n Do they:<\/p>\n Obviously, if there is no clear use for cost savings, they \u2013 and possibly the entire work of the procurement department \u2013 may not be perceived as very valuable to the organization. \u00a0Therefore, it is important for every procurement professional to understand how cost savings benefits the organization in the eyes of its senior executives. \u00a0And, if those senior executives don\u2019t really have a plan for how cost savings should be used, it is important for procurement professionals to lead the charge in helping senior executives develop such a plan.<\/p>\n That is just one more way\u00a0that procurement can become more strategic.<\/p>\n","protected":false},"excerpt":{"rendered":" In procurement, we celebrate the achievement of\u00a0cost savings. \u00a0Like when […]<\/p>\n","protected":false},"author":12,"featured_media":4123,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n\n