There’s no surprise that majority of the companies spend a lot of their budgets, personnel and resources on sales. Since for a business, profit is everything business owners spend more time in generating value for the company. The unfortunate part is that since so much of effort is focused on one task, other processes such as procurement gets neglected. This leads to problems later on for the company. These are a few reasons as to why procurement needs to be considered as important as sales.
- Increases Sales Margin – The company’s profit increases only when products and services are procured in an effective manner. Spending little extra on third-parties cannot be addressed however, there are ways to save by dealing with vendors and suppliers.
- Create Brand Value – When it comes to increasing brand value, marketing is the way to go however, procurement too plays a significant role in it. The suppliers play a role in creating positive brand value in the eyes and minds of the customer and clients. The image in the minds of the customer depends on how well the supplier produces and does for the company.
- Strategy Shaping – In order to shape the company’s strategy for the better, the company needs to focus more on the strategies related to procurement of goods and services. This is done by aligning the supply chain with the customer’s wants, needs and aspirations. Today’s customers not only focus on the price of the product, they also focus on the flexibility of product’s overall value.
With these reasons, getting a certificate in procurement management will be highly beneficial in your career.