Opinion: The strategic position of procurement within a contemporary organisation………Procurement’s growing demand to drive cost savings initiatives and value engineering | 3NEWS.com

Procurement must be seen as a strategic function with the responsibility of creating value, implementing strategic functions which is to save cost and avoid cost.

Until a procurement unit or team is able bring on board strategic initiatives within an organization, the recognition given to the Procurement function will also be very low.

Without understanding and subjecting the item needed for proper analysis, we will continue to have procurement undertaking unneedful purchases which cost organisations a fortune.

The continuous edge for procurement to align its function with organizational goals and objective is heightening and procurement must stand up to the task.

Need analysis will help procurement know if it must go ahead to purchase an item or not and its related quantity.

Sometimes an item can be needed but the quantity wrongly stated and without analysis, it will be purchased which cost the organisations a lot.

Procurement must subject every need request to proper analysis to ascertain the importance of the requested item?

Without proper analysis of needs, procurement will purchase every item request that comes to its end and might not always be of value to the organizations output.