Purchasing is often overlooked when it comes to value creation in your organization. Historically, the function has been viewed as an operational support function focused on ordering goods and cutting costs, while few have realized that purchasing also influences the company’s valuation.
Supply chain leaders’ general reaction to market uncertainty has long been a unilateral focus on cost reduction: savings, efficiencies, and lower unit costs. It may seem logical, but in a world marked by volatility, complexity, and uncertainty, it is rarely sufficient.
The problem isn’t that companies focus on efficiency—it's that they rarely link purchasing decisions to the company’s overall value creation.
And if the goal is to build a robust, valuable, and long-term business, it’s necessary to challenge this understanding.