Despite the enormous contribution to the creation of added value, which can bring competent cost management, the reality is that in many sectors, procurement is still mainly a service function with limited mandate.
After publication of the article “Procurement Savings vs Budget”, I planned to consider in detail the impact of Inflation on the indicators of procurement savings, however, the topic of the Budget caused heated discussions, and I decided to continue it.
The HR Director burst into our office and said from the threshold: Vyshlova! You will work in procurement! I was dumbfounded: What?... We do not have such a department .... But he insisted: From today there is!
On the field of disputes around the methodology for calculating procurement savings, there has already been enough crossing of swords. Yes, indeed, there are no uniform universal calculation rules. However, you should always remember the goal: the calculation of savings should reflect the contribution of Procurement to the result of the company!
Regardless of whether the company has a dedicated procurement function or the process is decentralized, whether you create a team or join an already existing one, or the company realizes the need for change at some time, everything starts with people....