maandag 28 maart 2011

Value and Costs

Despite the upcoming trend of 'value', costs remain important!!

The concept 'value' continues to take a central position in procurement. With respect to the position of Procurement I consider this as a positive trend and it contributes to the fact that in many organizations procurement is shifting from a support to a strategic function. There is a lot to gain for procurement with respect to value, nevertheless, 'value' is linked to 'costs'; it are two sides of the same coin. Therefore an article is expected concerning a more holistic view of procurement in which costs and value are not seen as two separate concepts, but two intertwined concepts.

Reading tip is the classic work of Porter: Competiteve Advantage. Although it is a somewhat older book, the theory about costs and value in order to obtain competitive advantage provide also these days useful insights!

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