Procurement Should Save Money in 2023
That doesn't diminish the role of Procurement
Hey Procurement Legends,
You may have noticed that you now receive an additional weekly article newsletter. In short, 'I’m sending you one new piece of content every Monday and this round-up email every Wednesday.
This email will feature one actionable takeaway you can apply to your Procurement Role today.
I’ll also share some pieces of content I’ve gained value from this week.
This newsletter is only possible through the paid subscriptions that we receive. So I wanted to say thanks to our Paid Subscribers. You’ll soon be receiving exclusive member-only content from the World of Procurement Book I’m putting together on the future of Procurement.
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Savings with Software Contracts
Software Contracts can be complex for no reason other than, let’s use SaaS as an example; they’ve morphed with precedent into horrible contracts that no one is interested in improving.
Why?
Because the risks usually lay with the buyer - there’s a cost there.
And that suits the seller.
So here are some considerations you should make that could save you money from your purchase or some that will fall into the cost avoidance bucket.
Usage - build scalable usage options and ensure a notification before any price increase.
Escalation of costs - ensure that there is a gradual increase in cost and not a sudden hike with ridiculous usage parameters designed to trap you should there be a spike in usage (especially if that is out of your control).
Auto-Renewal - remove the auto-renewal clause and replace it with an extension clause. As the Procurement Pro, this requires you to take the supplier upon an extension. You may be able to bake in savings here on their pricing for those extension periods.
Let me know if you want more content on this - I’ve a ton of notes and examples I can share with you.
New Podcast Episode with Andra Fola
I dropped a new episode with Andra Fola on Procurement Reimagined this morning. This episode focuses on procurement throughout a recession. Andra shares a lot of knowledge bombs.
What I’ve found Interesting
This post from Stephane Morel on Procurement Levers.
This Post from Tom Mills on RFPs.
Kearney’s Purchasing Chessboard
That’s it this week, my friends.
I’m signing off for the week to spend some time with the family and recover from a couple of weeks of sickness.
Daniel