The procurement dilemma: short-term savings or long-term shareholder value?

摘要

Although this study is based on the analysis of only four scenarios that have been simplified to be administered in a multiple choice environment, the results are sufficiently telling to engage corporate leaders to rethink the way they set the vision and the mission of their procurement team. The study shows that in environments subject to aggressive cost competition, the pressure on procurement staff to generate short-term savings reduces their ability to properly identify, differentiate and manage relationships, with a focus on sustainable competitive advantages. Short-term cost reduction can be relevant in many transactional exchanges, but they fall short of the most efficient usage of the resources offered by the suppliers.