Episode #0013 – What Is Procurement?
In this episode of Pricing College – we discuss the role of procurement and why any pricing professional in a B2B environment needs to be prepared.
TIME-STAMPED SHOW NOTES:
[00:45] Procurement is to buy products and services to make their own business work better.
[01:20] Large companies will have dedicated specialists for procurement.
[01:50] Management can not know everything – so you need expertise in what you are buying.
[02:30] The profession has become much more expert and focuses on needs analysis. identification of suppliers and measurement of outcomes.
[03:40] Mirror image of a pricing team – with sales trying to increase prices and buyers seeking lower prices.
[04:30] Pricing can learn from procurement – such as seeking to increase value from suppliers.
[05:00] We can also learn from the negotiation techniques used.
[05:30] Joanna says that often procurement does not focus on value enough.
[06:20] Does your company send competent people in to negotiate with procurement.
LINKS MENTIONED IN TODAY’S EPISODE: