a) Is the transformation of an organization to cost leadership a procurement responsibility, or a shared responsibility?   b) What is the role of change management and cultural changes in driving cost leadership?

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
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a) Is the transformation of an organization to cost leadership a procurement responsibility, or a shared responsibility?

 

b) What is the role of change management and cultural changes in driving cost leadership? 

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(a)

Procurement and other functional divisions of the firm often share responsibilities for transforming the organization to cost leadership. While maintaining supplier relationships, negotiating contracts, and finding possibilities for cost reductions are frequently the responsibilities of procurement, attaining cost leadership necessitates a comprehensive strategy that encompasses all parts of the company. Internal process streamlining, increased effectiveness, waste reduction, and chances for innovation and value creation are a few examples of how to do this. In order to achieve cost leadership, all functional areas of the company must work together and be aligned.

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ISBN:
9780357033791
Author:
Pride, William M
Publisher:
South Western Educational Publishing