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The Value Exchange

Posted 5/3/2022

Procurement’s primary goal is to add value to the benefit of the buying organization. 

What that value is may vary from organization to organization and project to project. Asking for and obtaining that additional value is the Art of Procurement. Traditionally, value is defined as lower cost, better service, and higher quality, pick any two as your strategy. Forward thinking organizations are incorporating a broader vision of value through procurement. Creating value can incorporate interests well beyond the project at hand.

Many organizations, both buyers and suppliers, now recognize the value chain that can be created through responsible action to mitigate environmental cost and enhance community and social benefit. Real and meaningful actions are taking place now, doing more is possible. Some questions to ask:

  • ·        Who are the social enterprises in our communities and what can they offer?
  • ·        What could be done to reduce carbon emissions and/or become carbon neutral?
  • ·        Could the project offer training opportunities to employment barriered individuals?
  • ·        What could the project do for regional economic development?
  • ·        How can a broader interpretation of value be implemented throughout our organization?
  • ·        What could be exchanged to realize a broader and socially responsible interpretation of the value chain?

Procurement through asking the questions appropriate to the project and applying relevant weighting to the evaluation of the answers is the art of procurement.