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Wednesday, 16 March 2016

Not just price reduction

Such a great example within a few minutes walk of my house about what Procurement is about - and it's not always about price reduction.

Imagine the scene - you've tendered and got the most competitive price for your road signage, addressed all the business requirements around service, total cost and sustainability and still you've been asked to reduce your budget.

What do you do? 

Reduce the size of the signs?

This 
becomes 
and 
becomes
and this 

becomes this 

Just a great example that reducing budget isn't always achieved by reducing the price of what you're buying, but reducing the cost of what you're buying.

Alison Smith
The Purchasing Coach
Inspiring change inside and out 

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