1. Which costs can be considered procurement costs?
Procurement costs refer to the expenses related to goods and services purchased for a company’s supply chain, the cost of managing procurement personnel, and the cost of investing and maintaining procurement software.
2. What are the 6 types of cost savings?
There are 6 types of cost savings that you can apply to your procurement process, including historic saving, budget saving, technical saving, RFB savings, index saving, and ratio saving.
3. Is procurement and purchasing the same?
They may seem similar but actually have different focuses. Purchasing aims to optimize the cost of the order, while procurement attempts to maximize the value creation and total cost of ownership, including risk mitigation, cost savings, supplier relationships, contract compliance, etc.