At Procurement Cube we like to think we’re a bit different than other procurement consultancies. We’re not just your run of the mill procurement company. We don’t come in and slash your outgoings. Oh wait, that’s what you want us to do?
Well, it’s not as simple as that. In fact, an approach to procurement that only focuses on saving you money can be incredibly short-sighted and actually end up costing you more (we even wrote a blog on it which you can read here)
And, that’s what makes us stand out. Our work is based on a unique approach devised by Armand Brevig, our Managing Director.
Here he explains what it is:
“I’ve been working in procurement for 19 years now and during that time I’ve seen every approach and tactic there is. But, with each of them, I always felt that there was a better way. Yes, they had the ability to save the organisation money – if used properly that is – but they often meant that business goals were lost along the way or reimagined to fit around what procurement could achieve. These strategies may have reduced expenditure in some areas, but often they didn’t help the company achieve true growth and development.
I can understand why procurement approaches such as these are so attractive. After all, money is an easier KPI to measure than hard-to-quantify business value.
But, it got me thinking and I asked myself:
- What if we forgot about all our Procurement techniques for a second and asked more critical business questions?
- What if we became really clear about what you, as a company, were trying to achieve, rather than pursuing a procurement agenda?
- What if, instead of pushing key stakeholders down a path they are reluctant to walk, we explored a range of options with them regardless of whether we thought Procurement could help?
My answers to these questions led me to developing three procurement principles. I’ve not only followed them ever since, but they now form the core of Procurement Cube. The video and the rest of this article explain what these procurement principles are
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There is only one strategy
And, that is the corporate one. Everything needs to tie in with the business strategy. If different areas of the business are misaligned with that, or have competing agendas from each other, it is destined to fail.
Procurement’s job is to leverage supply markets in support of that one strategy. The procurement approach should form an integral part of the wider organisation strategy and be a catalyst for developing supplier relationships that help the company succeed.
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Don’t lose sight of what you are trying to achieve
This principle involves looking further ahead than the first one. It’s about reminding yourself of what you set out to create. What is your mission?
If you want to be the greenest company in your sector, are your suppliers going to enable that? If you want to create a working environment that will attract the top talent, have you got the right systems, HR services and recruitment services in place?
Moving away from your goals and ideals towards a cheaper or more convenient alternative not only destroys value, it can also be a hard position to justify moving back from.
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Focus on value, not cost
Every procurement decision you make should maximise genuine business value for your company. This includes pursuing an optimal balance between total costs and value, which in turn may (or may not) include total cost reduction.
With the right procurement approach, stakeholders, employees, and your customers will benefit.”
If you’d like to find out what would happen when these three procurement principles are applied, why not book a no-obligation call with Armand today using the form below.
