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How business users view procurement? The role of procurement should be to lead cross-functional teams to integrate business needs, end users’ expectations, technical specs, costs and so on into balanced decisions. The main effort should be directed to solutions that generate value to the business, and not just cost savings.
The main areas for improvement should be:
1. Understand better the business needs. 2. Develop and apply a lifecycle perspective on supplies. 3. Work jointly with engineering, operations, sales and other functions to discover
savings through value engineering or remodelling the business. 4. Respect the valid needs of users of the products and services. 5. Rotate the staff in other functions in order to gain experience.
6. Establish a ‘red line’ for price negotiations and do not push suppliers to offer below cost price. Bankrupt suppliers or degraded quality must be charged to procurement.
Kostas Theofanides, Technical Service Manager, Major Oil Company, and President of Hellenic Association of Safe Transport
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