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Why I hate Procurement!
Posted on March 6, 2009 by hudgeon in VendorManagementI’ve just received a newsletter from a local procurement consultancy that opens with the following
…For all the recent grim news and economic forecasts, 2009 is shaping up to be one of those years where anything could happen. The current set of economic conditions provides a huge opportunity for procurement to demonstrate how the function can deliver value.
Why do we use such navel-gazing, foot-shuffling, back-of-neck-rubbing language when we talk about the role we play in business? Why not just say “There’s some cracking opportunities to lower your company’s operating costs and ensure continuity of service!”
When we talk to suppliers, we talk straight. Why not elsewhere?
To answer your question, it’s because most procurement consultancy folks aren’t willing to risk their gigs by putting a cost savings number on what they can accomplish. Plus the fact that it’s hard to quantify risk in terms of dollars.
Now… there is some logic to not promising financial ROI. Then again, if you’re willing to base your payment on savings, this shouldn’t be a problem if you’re good at it.