In today’s economic scenario, as the global economy continues to limp out of recession, procurement leaders are faced with an unusual set of cost pressures. They are now expected to accelerate the pace of cost savings delivered without compromising other aspects like quality, delivery, etc., all with no further significant investments for resources and/or in many cases reduced resources.
These sets of new challenges call for some bold, fast action; complacency with status quo is not an option for any procurement organization. Historically, savings programs have been in place, however, the pace at which these are delivered needs to be accelerated. Similar to a key contractual term that “time is of essence”, the same applies to procurement organizations as well.
Corbus is presenting this two part series on how to accelerate the realization of cost savings and increase overall value delivered to the organization. Part 1 focuses on the processes at the lower end of the spectrum i.e., transactional and operational, while Part 2 focuses on strategic sourcing delivery models, thinking beyond the traditional boundaries and reshaping the approach to organization design.
Over the years, many procurement organizations have supported other internal business units with their outsourcing decisions for various functions including call centers, IT, etc., which are now in a very mature state. It is procurement’s turn to really look internally in an unbiased manner and see how incremental value can be delivered.
