You shouldn’t be surprised at companies spending a lot of money and resources on sales. For a business owner or larger organizations, generating profit is what their main aim is for the company and for themselves. However, the sad part is that since more effort is focused on only part, other processes such as procurement, finance, etc. are ignored. This later on becomes a problem for the company. These are some of the reasons as to why procurement is considered as important as sales.
- Helps in Increasing Sales Margin –Company’s profit will only increase if the products and services are procured in the best possible manner. The company may spend on third-party vendors and suppliers. However, there are effective ways to deal with them that will help to save money.
- Helps in Creating Brand Value – In order to increase brand value, marketing is the most important tool focused by the companies. However, using procurement as a tool too can help to generate brand value. For instance; if a company has a genuine and trustworthy supplier, then customers too can rely on them creating a positive image in their minds.
- Helps in Strategy Shaping – For better strategies of a company, it needs to focus on procurement related strategies. This can be done based on the customer’s wants and needs by simply aligning the supply chain. Customers nowadays not only focus the product’s price but also on the flexibility of the product.
Due to these reasons, you should consider giving a go for procurement and contract management training.