Before the Breakthrough

Even before a company begins the serious work of changing their procurement process, it will no doubt have taken some or all of the following steps: leveraging volume, analyzing price, and analyzing costs.

Leveraging Volume

Now, don’t fall off your chair when I say that many companies have spent millions of dollars on boutique consultants who spend hundreds or thousands of hours studying the procurement process of the client only to come up with a brilliant idea: “You need to reduce your supply base and give more business to fewer suppliers.” It’s called trading volume for price and is clearly one of the oldest negotiation tools. Seriously, do you need a consultant to tell you the obvious? However, if you have not already ...

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