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IBM has recently announced the launch of a Procurement Centre in Accra to serve 17 countries in Africa, demonstrating that many organizations are becoming aware that the Procurement function is no longer just an operational cost centre but one of strategic importance to their supply chain. According to ISM – The Institute for Supply Management, every 1% that you reduce costs equates to 5% in additional sales. Similarly, inefficiencies along the procurement process can cascade down the supply chain and adversely impact the bottomline.
As prices of commodities become more volatile, it is crucial for the Procurement professional to proactively assess and review how to plan and implement value-added procurement strategies, perform successful win-win negotiations without leaving money on the table, and develop effective and sustainable relationships with key suppliers.
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