Gartner Research

Sure-Fire Approach for Validating Procurement’s Contribution

Published: 30 June 2017

ID: G00385983

Analyst(s): Procurement Research Team

Summary

Procurement organizations typically validate their contribution to business objectives by demonstrating the value of their projects across four critical value streams: supplier rationalization, product differentiation, improvement through measurement and lean supply. Thet use credible formulas (based on relevance to business priorities) to screen Procurement projects and quantify their economic value addition, develop targets for category managers that go beyond savings, and support ancillary business partner priorities and market realities (e.g., involvement in NPD, inventory reduction).

Table Of Contents

More Detail

Procurement’s Contribution Across Four Critical Value Streams

Develop a Reliable Value Formula

Introduce More Strategic-Value Targets for Category Managers

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