In Procurement, Margins Are More Important than Cost Savings
The conventional wisdom about procurement is that cost savings are the fundamental priority. One sees this emphasis all the time. Here is Procurement Magazine referring to the 2023 Hackett Group survey: “Procurement’s main priorities for the year include ensuring supply continuity, combatting inflationary pressures and reducing spend cost.” Who could argue with the importance of […]
How Do Buyers Get Procurement Synergies?
Synergies. They are used to justify all kinds of activity, but no more so than in corporate mergers and acquisitions. Quantify the amount of this value to be created in terms of incremental revenue or cash flow (depending on the method investors prefer to use in valuing the acquiring company) and you have a pie […]