The centralization of the procurement function within an organization, in which the purchase of goods and services is managed by a single department for all branches of the business, emerged in recent decades as a key operational strategy for increasing efficiency and reducing costs. This model makes it much easier for an organization to maintain policies and procedures that enable smarter buying across the company.
As we face the prospect of an economic downturn, firms are looking at ways to best position themselves. A centralized, clear vendor governance strategy that aligns with the firm’s strategic direction can aid in responding to economic turbulence. Vendor governance can help a firm readily identify operational costs for reduction, minimizing the impact on profits, and sustain those cost savings during an economic downturn.
HBR and GLG Law (Gerson Lehrman Group, Inc.) recently co-hosted their first education session on Vendor Risk Management in New York City. This session was part of a quarterly series to provide expert insights into topics that are front-of-mind among legal procurement leaders. HBR’s partnership with GLG, a platform connecting professionals to expert insights, ensures the sessions deliver information from industry-leading sources.