I hope that you have enjoyed the article “Sourcing Decisions: How To Support Them.”

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There is one very important thing that I really want you to take from this article.

Year-over-year cost savings is often the “selling point” that sourcing professionals use to convince executives to accept their recommendations. While this is, and will always be, important, it is a somewhat overly myopic metric.

For it is not just the comparison against past performance that makes a sourcing decision a good one. It is also the comparison between alternatives going forward. Unfortunately, that is a point often missed.

While price and ability to perform are critical to executives, so are total cost, value, and risk. Address those items numerically in your recommendation and you’re well on your way to successfully selling your superiors on a sourcing decision.

To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
Struggling To Have A Rewarding Purchasing Career?
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Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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