One of the most important goals of any company is to obtain a competitive advantage.
That’s the factor which sets you apart and gives you an edge over your competition. Without a clear competitive advantage, it’s tough to differentiate yourself and carve out a piece of the market.
This is a huge task. It requires coordinated efforts and the input of numerous people. But while many departments need to do their share, procurement has a big role that’s vital to the overall success.
Specifically, when you’re trying to stand out from the crowd, it’s easy to lose track of spending. It’s important to invest in this, but you can’t go too far. After all, no amount of differentiation will help if it comes at a financial cost that makes it difficult to conduct your regular business.
This is where procurement managers come in. It’s their job to rein in the spending. Of course, they need to do this without jeopardising the message your company wants to send. It’s not an easy balancing task to pull off, but there are things that can make it easier. One of them is identifying exactly what the customer needs.
Heathrow Airport provides an excellent example of this. During the construction of Terminal 5, the initial plan was to focus on check-in desks. The management wanted to build large rows of them in an effort to make things more convenient for the passengers.
The procurement department examined the proposal and found it didn’t address the customers’ need. What the passengers needed was faster footfall. So, the procurement team proposed a solution inspired by the rapid checkout systems you’d see in supermarkets.
This proves how vital the role of procurement is. It would’ve been easier for them to accept the original proposal and find the most affordable check-in desks. But that wouldn’t have given the passengers what they needed and wanted. It would have been a misguided investment and poor use of funds.
There are other ways your procurement department can help you acquire a competitive edge without breaking the bank. Speak with the Promotional Centre team to learn more.