We love to help our clients come up with new ideas and ways to procure the items they need. To get there, sometimes it’s helpful to look to the musings of great minds for inspiration.
We’ve pulled together a few thought-provoking quotes that remind us of procurement and motivate us to reach our goals.
- "We cannot solve our problems with the same thinking we used when we created them."- Albert Einstein
Success in procurement no longer stems from simply cutting costs, managing supply, and periodically improving your processes. To really make an impact and thrive in the midst of external market pressures, procurement teams need to go deeper by capturing new revenue, driving high impact financial growth, and proving their role as a major competitive weapon for the organization.
To do this, teams can’t rely on the same tactical approaches and mindset they’ve always turned to. They must adopt and lean on a holistic, transformative approach to sourcing that truly generates impactful value for their business. If you want to generate new value, you need a new approach. While the “stick with what works” mentality might produce short-term results, it won’t lead to greater, long-term business success.
- “Price is what you pay. Value is what you get.” - Warren Buffett
Procurement isn’t just about cutting costs or securing the lowest price for a product. It’s about delivering value for the organization.
Value can come from cost savings in key categories, but it can also come from the business benefits a holistic approach to sourcing provides – new products that spark sales, financial gains, protection of brand reputation and risk reduction. To truly inspire procurement success, teams need look for new, creative ways to generate value and stop overly focusing on tactical aspects of sourcing like pricing and negotiations.
- “Checking the results of a decision against its expectations shows executives what their strengths are, where they need to improve, and where they lack knowledge or information.” – Peter Drucker
Part of what makes high-performing procurement teams successful is that they have clear key performance indicators that all stakeholders align to reach. How do you know what success looks like if you don’t have an idea of where you want to go?
Looking at financials, stakeholder interests, processes, technology, people and knowledge is a great place to start. From there, tracking quality, reliability and cost, on-time delivery, supplier diversity, working capital, bottom and top-line contributions and spend under management can be extremely helpful. These will ultimately inform procurement strategies that produce long-term value, growth and sustainable results.
- “The achievements of an organization are the results of the combined effort of each individual.” - Vince Lombardi
To achieve real results through sourcing, your efforts can’t be siloed – if they are, you’re leaving money and value on the table.
An enterprise-wide approach that consists of a single, centralized process for purchasing that’s managed by the procurement team can do wonders for the business. A whole is greater than the sum of its parts. With more departments strategically sourcing purchases over time, procurement becomes less like a single business group within the organization, and more of a process that permeates through the entire company, spreading the wealth of smart sourcing – cost reduction, innovation, lessened risk and increased value for your money – across the entire enterprise.
- “Technology gives us power, but it does not and cannot tell us how to use that power. Thanks to technology, we can instantly communicate across the world, but it still doesn't help us know what to say.” – Jonathan Sacks
Teams need more than a tool to be successful – they need the right people behind the technology to power the decisions.
Hiring great people, and tapping an external partner that can complement your team with extra resources, tried-and-true strategies and category expertise, sets you up with all the resources and experience you need to reach your goals. Whether you need RFI assistance, event setup or strategy suggestions, extra staffing resources or help defining product specifications or turning complex categories into productive events, your partner should do it all, and work by your side, all while leveraging your internal knowledge and expertise.
What quotes most inspire your procurement and sourcing success?
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