The above quote comes from Warren Buffet, talking about sales and marketing.
However, I feel that the quote is equally as relevant for Supply Chain and Procurement professionals, especially in today’s climate, where there is constant pressure on reducing costs and ultimately squeezing the Supply Chain.
Is this really a longer term option? I don’t believe so!
The key is to focus on value – what value is Supplier X bringing to your business? How can Supplier Y bring more value. Once we switch our mind-set to value creation, a world of possibilities open up.Once we switch our mind-set to value creation, a world of possibilities open up Click To Tweet
One way that you can create value within Supply Chain and Procurement is to look for innovations that reduce consumption, another way is to deliver to point of use, another to deliver a streamlined procure to pay process.
There are so many options that will deliver far more value and ultimately benefit to your organisation if you just move away from simply looking a price as the deciding factor.
What do you think?