EXECUTIVE INSIGHT
they reach US $ 1bn in revenue . Until then , companies often rely on ‘ hobby buyers ’ – employees using corporate cards or writing their own purchase orders . This doesn ’ t highlight the need for a formal procurement organisation . As companies grow or go through acquisitions , they start to realise the inefficiencies and redundancies this creates . For example , a company might have 30 + agreements with the same hotel chain because every department books independently . Or different departments might negotiate separately with the same supplier for various services . This creates waste and inefficiencies . It ’ s okay as long as companies recognise this early and start integrating procurement into their operations . The main reason to work with procurement isn ’ t just to reduce costs . The value comes from the ‘ marriage ’ that procurement professionals create between stakeholders and suppliers . A good category lead spends half their time understanding their field , market trends , and stakeholder needs . When procurement can deliver this ‘ marriage ’ effectively , companies start to see its true value beyond just cost savings .
38 November 2024