The tasks of strategic procurement include much more than just generating savings and supporting cost reductions. The ultimate goal of high-achievement sourcing should be to manage chances and risks of the procurement market. To achieve savings or better cost reductions is an important goal, but just one of many. Important other goals in this process can be, for example, ensuring product quality, sustainability as well as supply chain stability and resilience.
No company in the technology sector can succeed without technology partnerships in the long term. Procurement must therefore take on the task of being the manager of these technology partnerships. Together with the research and development departments, new suppliers can be searched for based on the corporate strategy, or existing suppliers can be developed.
With the correct implementation of this approach, your procurement function becomes an enabler of innovation. Specialist departments are transformed from “need carriers” to internal customers. Important suppliers become strategic partners.
Incentives for successful savings are an important lever for achieving high-achievement sourcing. However, if other goals are pushed too far into the background, the procurement function will be misunderstood in its potential and the entire company will be slowed down.