The importance of cost savings should not be forgotten as the world of procurement changes, an event was told.
Fabio Francalancia, group procurement director at Sky, said there was a risk savings would not be seen as “sexy” as other concerns, such as technology and social responsibility, took centre stage.
Speaking at the SAP Ariba Procurement Summit in London, he said: “If I see a risk, it’s where generating savings is becoming less and less sexy. The purpose is customers, social responsibility.
“Making savings is the most sexy thing because you will fund content.
“The fundamentals are still around having smart ideas to make a better business with lower indirect costs, to fund the core and impact the customer.”
During a panel discussion Ian Galloway, group procurement director at Capita, said his company’s profit warnings were well known. “Cost and savings are my primary drivers right now,” he said, adding Capita had a spend of £1.4bn and 36,000 suppliers.
“Capita had never had its top 50 suppliers in one room until last year,” he said.
“You have to be really honest and say, ‘This is the challenge, we need your support. This is our growth plan. How do we bring you on this journey?’”
Francalancia said: “If you are in an interview with me and you say, ‘I don’t want to do savings’, then the interview is over.”
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