I enjoyed reading an article on Comcast’s site today that said that General Electric was planning to purchase 25,000 electric vehicles by 2015. That’s quite a spend category in itself, don’t you think?
What I find thought provoking about this initiative is that the point of it is to “accelerate the adoption curve” for electric vehicles according to no less than GE’s CEO. You see, GE makes devices that charge electric vehicles. The more electric vehicles are embraced by the driving public, the more chargers GE will sell.
So, choosing electric vehicles vs. conventional vehicles has nothing to do with it being a lower cost alternative. In fact, it may be the highest cost option available as the article says that electric vehicles have “not caught on” due largely to “the high cost and limited battery range.”
There are many situations where internal customers of procurement departments have made cost a very low priority for them and the procurement department struggles to get them to see the lower-cost-equals-higher-profitability-and-better-job-security light. But, there are scenarios where the case to ignore total cost has such a strategic tie-in and executive-sponsored support, that procurement departments may be wise to put the brakes on any thoughts of challenging the decisions.
I would love to hear your examples, either of times when you had to yield to a cost-is-not-an-issue demand or times when you were able to influence your internal customers to make a U-turn and agree to a lower cost option. Click the comments link below to share your stories.
To Your Career,
Charles Dominick, SPSM
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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