Can we please upgrade savings from a short term vision to creating long term value⁉️

Can we please upgrade savings from a short term vision / impact to creating long term value⁉️

Is this approach limiting our impact ?

Hold up! Let’s break this down…

I believe around 80% of the yearly savings are short terms & what bothers me is that they’re treated as the primary measure of success, an achievement in itself!! Right?

This perspective can overlook the most important work done behind these savings & may even obstruct the real value created for the business.

Isn’t it a narrow approach to be constantly graded on a single metric?

Does this truly motivate us?
Personally, it doesn’t.

If my bonus were tied to my savings, similar to how sales teams are incentivized, I’d be a millionaire by now —> who’s with me? 🙂
And while incentives matter, they should never come at the cost of the business

Yes, excessive pressure on cost reduction can lead to questionable practices & create ethical dilemmas, if savings are pursued blindly.

Healthy pressure? motivating!
Excessive pressure? risky & counterproductive & We want to avoid that!

But here’s the real challenge…
Demonstrating procurement’s added value beyond cost savings is complex.
So, is short term savings the best we can achieve?

Can we challenge this outdated mindset?

Procurement leaders, shouldn’t we strive for more?
What if we focused on long term savings that drive real business value?

But Let’s Be Clear…
I’m not saying savings don’t matter. They do.
But we can do better than just chasing short term wins.

A 3-Step Shift to long-term value?

Just a simple process:

Step 1: redefine value beyond short term metrics

Step 2: update how we measure value

Step 3: tell our story & elevate procurement


A good plan should be MEA 🙂
1. Measurable (KPIs that track real value)
2. Easy to implement (integrate with existing procurement processes)
3. Actionable (steps teams can take)

-> check docs below with examples of formulas and let me know what you think?

I know, this shift won’t happen overnight, but it’s worth starting now.

I’d love to hear your take ! how can we shift from short-term wins to long-term impact? Thank you 🙏