Six Core Components of Procurement

Procurement matters.

Few other functions have the potential to contribute as much to corporate performance—the ability to increase revenues, control costs, grow profitably, and consistently outpace competitors.

Six core components of procurement:

• strategy
• sourcing and category management
• requisition to pay
• supplier relationship management
• workforce/organization
• technology

The most important message is that the time and effort companies put into becoming procurement masters are rewarded by lower costs of ownership; more opportunities for continuous improvement; deeper, more fruitful relationships with suppliers; and the ability to materially improve other processes, such as new product introduction.

Source: Why Procurement Matters

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