Sharon asks how to shift procurement from cost-cutting to value creation. The answer: define what value means for your organization first, then measure procurement's impact on revenue growth, not just spending saved.
Question from Sharon saying, okay, good point. Can you share some tips on how do you go from being a cost center to a value generator?
So first and foremost, we need to define what value means for you as a specific organization, right? Depending on what state you are in or what maturity curve of the organization you are in, value can mean different things to different people. For me, value could be in terms of how can procurement help drive revenue. First, and I mean, for me at least, especially in my current role, one of the, one of the roles that— one of the key KPIs that I have is driving revenue growth. So I have a target to help drive revenue growth because that's how I can create value.
