Historically, Procurement's peers have viewed the function's role through a narrow lens. They see it as a cost cutter - and little more. The function, conventional wisdom suggests, is there to save the company money and otherwise keep its mouth shut and keep its hands out of other business areas. In many instances, Procurement is happy to pigeonhole itself by playing this role.
In reality, Procurement is capable of much more than merely saving dollars and cents. It has proven time and time again that it can find new opportunities, improve products or services, and even strengthen stakeholder relationships. More importantly, Procurement has the capacity to make a difference in the world.
Global issues such as environmental conservation have become more and more time-sensitive - we can't afford to put them on the backburner. Businesses must devise an approach that allows them to focus on social responsibility and environmental sustainability in addition to profits. You don’t have to wait to hit a cost-reduction number to start driving change. Procurement has a unique position where it can reach out and impact every corner of an organization and its supply chain. It's time for Procurement to use this unique position to its advantage.
With a single-minded, limited approach to procurement, you might be able to save a couple of bucks here and there, but you won’t transform the nature of the company. The company won’t reach its highest level of potential unless it’s able to look at the big picture and empower Procurement. Yes, your department wants to cut costs, but who says you can’t have your cake and eat it too? You can promote change for the greater good within your supply chain and still save money down the road.
Diego de La Garza makes this case in a new blog for Procurious. He states, “ This macro-level approach to cost-saving lets you support the needs, beliefs or even the employees of your company to help bring about changes that will have an impact”. Realizing this means fearlessly driving positive initiatives, investing in socially conscious projects, and continually emphasizing Procurement's central role.
Check out the full blog to learn more about Procurement can provide for a better, healthier business and a better, healthier planet.