SCLCI's Back-to-Basics: 5 Minute Explanation of "Procurement Costs"
The series breaks down similar concepts in quick comparisons and makes a clarification simple to understand. Follow topics into greater detail within SCLCI Early Edition's case studies and articles.
Procurement Costs:
Purchasing Cost + Contract Value - Cost Savings
The definitive reason that supply chain management procurement is a strategic function within any business is that;
Cost savings from proper execution of procurement can be quantified, and
Influence of sourcing activities on product development and service delivery are substantial, and
Business unit leaders can align with corporate strategy through procurement.
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