Pricing Practitioners Track

The Evolution of the Procurement Function &
How it Affects Your Ability to Sell Value



Andrew Clones, Procurement Manager-Indirect Operations, Ralcorp Holdings, Inc.

Over the past decades, the procurement function has changed significantly with a focus on strategy over tactics. Purchasing has devolved: many organizations now view sourcing and purchasing as two separate, discreet operations. Purchasing is more frequently a function targeted for cost reduction to the point that it is outsourced, off shored, and automated. While the procurement part is minimalized the sourcing function is structured to increase leverage in negotiations. The result is significant distance between the end user and the contract negotiator, sometimes to the point of complete exclusion of the parties to be serviced. This creates difficulty for sales and marketing to establish customer relationships and to communicate the value offered that re-enforces and justifies their firms pricing structure.

Attendees will learn:

  • What distinguishes the purchasing and sourcing functions
  • How the procurement profession has evolved and the future trends in development
  • The roadblocks created to value communication
  • How general attempts to commoditize everything can create significant opportunities for collaboration

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