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September 17, 2013

Time to re-visit procurement function in fast changing world

There has been a decisive change in procurement function in last few months. Procurement has become a strategic function in the mind of Top management. Most of the companies are now moving the key procurement people from normal function to become part of central core team across business lines and functions. Clients are focusing on sustained value driven procurement, top-line growth and product innovation instead of focusing on just cost and control. The normal cost saving of 2-4% from contracts may not be application as we now don't see much variation on the price of goods and services.

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