The activities of procurement over the past 25 years have been firmly focused on the direct costs of delivering a product or service. In the case of manufactured products, many strategies have been successfully implemented, notably the mass relocation to offshore sources, in industries such as clothing and electronics. In the service industries this flight to low cost sources is exemplified by the establishment of overseas call centres and software creation subsidiaries. These initiatives have almost exclusively been driven by a desire to reduce the direct cost of the product or service.
However, there remains, largely…
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