1.Few important strategies of an organisation can be Growth, marketing and Finan
ID: 373161 • Letter: 1
Question
1.Few important strategies of an organisation can be Growth, marketing and Finance.
How does procurement help in building marketing strategy of an organisation?
2.Cost saving being a major strategy of procurement, what do you think is the best ERP Enterprise Resource Planning in the industries especially used for procurement?
3. Can you provide some examples of organisations using cost leadership in procurement?
4. What are the effects of procurement strategy on globalisation or international business?
5.What do you think is the best procurement Framework or models for small businesses?
Explanation / Answer
Can you please give me short 5 intelligent questions about this topic to ask to the presenter?
Procurement and Strategic Planning
“Procurement can drive strategic decisions”
Cost strategy is a fundamental part of business strategy
Procurement can deliver the cost strategy
Cost strategy can positively impact the bottom line and shareholder value
If organizations are not effectively using Procurement, they are not maximizing value for their
shareholders
Business Strategy
Michael Porter identified
cost leadership strategy
as a fundamental part of
broad business strategy
Advantage
Target Scope
Low Cost Product
Uniqueness
Focus Strategy
(Differentiation)
Cost Leadership
What is Cost Leadership?
Cost Leadership is based on being the
lowest cost producer in an industry, for
a certain quality of product
1. Improve process efficiency
2. Unique access to lower cost
materials
3. Outsource and use lower cost
alternatives
4. Avoid certain costs
55%
“Small businesses spend between 45-65 percent of sales revenue on
procurement of inputs. Therefore, procurement should be considered a viable
opportunity to reduce costs and improve efficiency.
Procurement
Can deliver the cost leadership
strategy
“Procurement can drive strategic business decisions”
Procurement can deliver the strategy
The procurement process plays a major role in managing external spend and delivering cost
reductions
Research has shown that
37% of 3rd party spend represents 47% of revenue
The procurement process manages 83% of spend
Procurement on average saves 5.3% of spend
2.5% cost reduction
2.8% cost avoidance
“Procurement - Collaboration is key”
Successful Collaboration
More than ever before, today’s business leader must learn how to tap
employees’ ideas and energy, manage large-scale rapid change, anticipate
business conditions 5 or 10 years down the road, and muster the courage to
steer the firm in radical new directions when necessary.
Indeed, more and more firms are making use of war-game simulations in their
decision making. At the same time, politicians and military leaders are using
advances in game theory in their war games.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.