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Best
Practices: Planning: Optimize Usage Commentary This practice drives at the core of Purchasing’s role. A company’s expenditures for goods/services is a function of cost per unit and amount of units bought. Purchasing's traditional role was focused on the cost side. Increasingly Purchasing is being asked to play a role in managing usage as well. Managing usage has huge potential leverage but who is responsible for achieving the savings? The users have historically been tasked with this responsibility. Purchasing adds value because it often has the best source of usage information across the entire organization. Purchasing also can identify ways to minimize consumption. For example, finding video conferencing options to reduce travel. Purchasing does need to be careful that it does not become the "usage police." Doing so will only alienate the customer base that Purchasing must work with.
Best Practice | Case Study | Commentary
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