Cost Optimization in Sourcing & Procurement

Explore how sourcing and procurement leaders can gain buy-in for cost-cutting decisions.

The procurement function is impacted by several challenges associated with business disruption including increased competition, aggressive pricing, rapidly changing technologies and new regulations. The procurement leader must ensure supply chain costs are optimized while balancing the reliability of supply, supporting social and corporate responsibilities, and mitigating risks.

Gartner research reveals that 52% of procurement leaders think professional services are ideal for cost optimization.

However, the most significant barrier to cost optimization exists outside of procurement: 

  • What are the challenges that category managers face when it comes to cost optimization?
  • Which group at your company is most likely to resist procurement's cost-cutting efforts?

Procurement leaders are using four approaches to resolve business resistance. Download the report to learn about the cost management approaches to resolve business resistance.

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Explore four cost optimization best practices.

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    Gartner support for optimizing supply chain costs

    To optimize supply chain costs, it’s important to align business value with efficient supply chain operating outcomes. Not only do the best supply chain leaders control supply chain costs in the face of disruptions like pandemics, recessions, and geopolitical shifts, but they also think about how different resources and networks interact. Supply chain leaders must change the way they interact with their key stakeholders and propose initiatives that achieve significant cost savings. Work with Gartner to develop a supply chain cost management vision that improves measurable performance while also enhancing leadership effectiveness, business influence, and strategic relevance.