Full Value Buying: Moving Beyond Price Negotiation

Peter Smith, Managing Editor, Spend Matters UK/Europe, and Jon Milton, Business Development Director of Comensura

In this paper, we suggest that many procurement functions spend too much time focused on price and run the risk of missing out on the major benefits that can be obtained from other aspects of the wider value picture.

The authors look at the range of mechanisms that can be used to drive better value, and then consider two aspects in more detail – demand management and specification. Focusing on the specification of what is being bought can often lead to even greater benefits; and demand management has the potential to save 100% if the entire purchase can be avoided!

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