Profitable Procurement is an oxymoron; a phrase that, in and of itself, is a contradiction. Predominantly, business procurement generates expenses, which are deducted from income, thereby, diminishing profitability.
Preoccupied with “saving money” by leveraging volume to obtain lower prices, purchasing departments neglect opportunities to add to profitability.
“Savings” from lower prices on expense categories such as business essentials* do not convey directly to the bottom line, if at all. Obtaining a $0.10 lower price on cartons of copy paper does not produce savings traceable to your profitability.
Profitable Procurement contributes quantifiable profit directly to your bottom line through an innovative strategy of “selling” procurement process improvements plus aggregated purchasing volume to a single vendor and increasing your negotiating power exponentially.