In today’s Art of Procurement, I share how the concept of demand management came to the front of my mind while out shopping for birthday presents for my son last weekend.
I then discuss five different ways in which procurement can help our organizations reduce their overall expenditure by managing demand rather than reducing supplier profit margins.
“Are the metrics that you have required of your supplier too aggressive. Do they represent a nice to have? Or a perfect world situation? If so, this increases the burden on your supplier, their cost to serve, and ultimately their price back to you.”
In this episode, you will learn:
- Details behind my 5 ways to reduce spend through demand management:
- Are products or services being over-engineered by business users?
- Could you use substitute products or services?
- Are your supplier metrics too aggressive?
- Are you at risk of making duplicate purchases?
- Can you reduce demand through policy and approval processes changes?
Links and Resources:
Thanks for Listening!