9 Tips for Procurement to Impact Revenue Generation

Over the past 20 years, the Sourcing function has evolved from Cost Reduction To Total Cost Management To Risk Management gaining more and more strategic impact. However, Sourcing initiatives are still contained to bottom line impact. In this article, we will share real cases coming from various industry sectors (automotive, pharmaceutical, aerospace…), where Sourcing Organizations have generated Revenue Impact through specific initiatives or organization design.

Purchasing to generate strategic market impact
Procurement to create a competitive advantage

This paper describes our 9 tips for Procurement to Generate Revenue Impact. They are broken into 3 categories...

1

Product

How Procurement can generate revenue by influencing the new products that your company will launch

2

Business Growth

By influencing processes that can exist today in your company how procurement can generate revenue

3

Future

Procurement can make profit by influencing, and participating in the dynamic nature of how the business world is likely to change, but how?

Procurement product business growth future

Click/Tap on each tip to read more

Tip #1: Design to Value

Tip #2: Engineered Procurement Organization for Speed to Market

Tip #3: Innovation Ecosystem

Tip #4: Lean Bidding through Parametrical Costing

Tip #5: Success in Growth Markets

Tip #6: M&A

Tip #7 to 9: Procurement 4.0

Conclusion: What does it mean for the future of Procurement?

We see Procurement evolving toward an increased synchronization with the overall business and a closer collaboration with the Sales organization. Traditional Category Management is expected to evolve toward a more value stream organized function allowing for breakthrough solutions to be quickly implemented Procurement will be more of a Business Partner contributing to the business model evolution by identifying and matching the internal and external opportunities. This will also impact the required skills of Sourcing professional: soft skills will take more importance than traditional functional skills.

Future of Procurement