Debunking the top myths of procurement: separating fact from fiction
Updated: Mar 24
Procurement is the process of purchasing goods and services for an organisation. It is a crucial function that helps ensure that a business has the resources it needs to operate effectively. Despite its importance, procurement is often misunderstood and subject to a number of myths. In this blog post, we will discuss the four biggest myths in procurement and provide some insights into the reality of this important business function.
Myth #1: Procurement is just about getting the lowest price.
One of the most common misconceptions about procurement is that it is solely focused on getting the lowest price for goods and services. While cost is certainly an important factor in the procurement process, it is not the only one. In fact, procurement professionals are trained to look at a number of different factors when making purchasing decisions, including the quality of the product or service, the reliability of the supplier, and the terms of the contract. A good procurement professional will take all of these factors into account and make a decision that is in the best interest of the organisation as a whole.
Myth #2: Procurement is a simple process.
Another myth about procurement is that it is a simple process that anyone can do. In reality, procurement is a complex and highly specialised field that requires a deep understanding of the business, the market, and the legal aspects of purchasing. Procurement professionals must have strong analytical skills, the ability to negotiate effectively, and the knowledge to make informed decisions. It is not a job that can be done by anyone, and it requires a high level of training and expertise.
Myth #3: Procurement is just about buying things.
Some people believe that procurement is simply about placing orders and buying things for the organisation. In reality, procurement is much more than that. Procurement professionals are responsible for managing the entire lifecycle of a purchase, from identifying the need for a product or service, to evaluating suppliers, to negotiating contracts, to monitoring the performance of the supplier. It is a complex and multi-faceted role that involves many different skills and responsibilities.
Myth #4: Procurement is a cost center.
Finally, there is a common belief that procurement is a cost center, meaning that it is a part of the organisation that only adds costs without providing any value. This is not true. In fact, procurement can be a source of value for an organisation. By carefully managing the purchasing process and making smart decisions, procurement can help an organisation save money and improve its bottom line. It can also help the organisation secure high-quality goods and services that are essential for its operations.
In conclusion, procurement is a complex and important business function that is often misunderstood. The four biggest myths in procurement are that it is just about getting the lowest price, that it is a simple process, that it is just about buying things, and that it is a cost center. In reality, procurement involves many different skills and responsibilities, and it can be a source of value for an organisation.
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