--- title: Procurement is not only about saving money! description: How are Procurement experts adding value beyond cost-cutting measures? image: https://blog.prophetic-technology.com/hubfs/michael-longmire-lhltMGdohc8-unsplash.jpg --- [hello@psdtohubspot.com](mailTo:hello@psdtohubspot.com) [+91 8874569874](tel:+91%208874569874) Hours : Opens 10:00 AM To 07:00 PM [![logoHD](https://blog.prophetic-technology.com/hs-fs/hubfs/logoHD.jpg?width=2500&name=logoHD.jpg "logoHD")](https://www.prophetic-technology.com/) - [Home](https://www.prophetic-technology.com/home) - [Subscribe](https://www.prophetic-technology.com/pt-blog-subscribe-opt-in-consent?hsCtaTracking=174cc371-9cdc-4b94-a32e-9007f0ac4dea%7C0776642c-2604-4695-8e3f-f7a74f10031a) - [Contact Us](https://www.prophetic-technology.com/contact-us-old) - [procurement](https://blog.prophetic-technology.com/topic/procurement) # [Procurement is not only about saving money!](https://blog.prophetic-technology.com/procurement-is-not-only-about-saving-money) By all means, Procurement has a meaningful protagonist-role in helping enterprises to reach their go... [Read More →](https://blog.prophetic-technology.com/procurement-is-not-only-about-saving-money) - [supply chain (286)](https://blog.prophetic-technology.com/topic/supply-chain) - [technology (138)](https://blog.prophetic-technology.com/topic/technology) - [logistics (81)](https://blog.prophetic-technology.com/topic/logistics) - [procurement (69)](https://blog.prophetic-technology.com/topic/procurement) - [optimisation (65)](https://blog.prophetic-technology.com/topic/optimisation) Posted by [Dave Food](https://blog.prophetic-technology.com/author/dave-food) on Dec 12, 2019 3:15:29 PM ![Dave Food](https://app.hubspot.com/settings/avatar/9fa060d35f0f962fafafe972c24035ae) Find me on: [Facebook](https://www.facebook.com/davefood) [LinkedIn](https://www.linkedin.com/in/davefood) [Twitter](https://www.twitter.com/davefood) By all means, **Procurement** has a meaningful *protagonist-role* in helping enterprises to reach their goals and cope with imminent uncertainty.  It will demand **Procurement** to focus mainly on *adding value* in a much more *strategic way* and not only by putting saving as the central point. **Procurement** operating models and market strategies should be: ·       Strategy and Business Planning. ·       Value and Performance. ·       Operating Models. ·       Operational Excellence. **How are Procurement experts adding value beyond cost-cutting measures?** ·       *Leveraging systems and technology*: to meet the new need of business automation, the Chief Procurement Officer (CPO) should look at **Procurement** to escalate existing systems and tech to afford greater clarity into the Management Information and Business Intelligence procedures. ·       *Team up with the organisation*: for CPO **Procurement** to stand up in the company they should make *critical stakeholders understand* the business operation and be involved earlier in the decision-making processes, adding clear value through the organisation. ·       *Advancing beyond cost savings*: many organisations struggle to extend their activities into central competencies such as Category Management and to reach out beyond cost-savings to a more tactical value for the company. ·       *By accomplishing the optimal operating model*:  **How?** By the *reevaluation* of *operating models* to drive out *more excellent value* from their activities, while providing a *robust-centralised framework* to deliver efficiencies across the entire *business operations* at a reduced-operating cost; and *push the inclusion* of **SC** on the wide-ranging *business agenda* to protect the business from future uncertainty. **Procurement** sections have a *vital role to play both in driving value* for money and *managing the risk* associated with these decisions. Those that *take a leading role* in this process enhance strategic outlines round the whole company; *the early* **Procurement** *engagement proves to deliver* significant savings.  Although, **Procurement** is often taken along into the process to either end *a deal* or *give an opinion on the contract terms*, *usually too late* to add up outstanding value – or most of the times only when the business process has already gone down. So, **Procurement** is *not focusing enough* on *supervising* and *tracking fulfilment* across the enterprise, consequently, it is dealing real challenges trying *to keep control over* both *direct* and *indirect spend*, as well as in backing up *demand managing* activities. **Procurement** roles need to span to *pinpoint* and *benefit* from chances to *add value*, whilst ensuring organisational *capital spending* to enable Procurement to develop into this more strategic role.   The ability to *achieve considerable cost savings* is associates to an *overall maturity in category management, strategic sourcing* and *SRM,* which can deliver a *higher per cent of savings* than those less mature colleagues. The **Procurement** function will experience an escalating-pressure in areas now considered not to be a priority.  **CPO** and **SC** Directors should, therefore, absolutely indicate the current *challenges* and *opportunities* facing the operations today.  Procurement can raise its competition to meet – and even go beyond – the potentials of the business. **Further comments:** it is the time to start *to communicate in a language* the entire business values. **CPOs** will need to be *more focused on* becoming efficient-edge *leaders,* and in *involving customers* to *deliver the value* of **Procurement** better. However, this usually demands a *culture-shift*, *taking Procurement away* from the concept that seems to dominate, to one that is *fully line up* with your organisational goals: **placing VALUE at the top.**   **Dave Food** [Prophetic Technology](https://www.prophetic-technology.com/) [![I want to subscribe](https://no-cache.hubspot.com/cta/default/2979069/174cc371-9cdc-4b94-a32e-9007f0ac4dea.png)](https://cta-redirect.hubspot.com/cta/redirect/2979069/174cc371-9cdc-4b94-a32e-9007f0ac4dea) - [procurement](https://blog.prophetic-technology.com/topic/procurement) - - - ## Post Your Comments Here #### About Us Prophetic Technology is a team of dedicated people that combine their expertise in business domains with a passion to release potential.s every page it appears on. 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