The document outlines various business, cost, and external drivers that impact an organization's procurement strategy and shareholder value. Business drivers include licensing, reputation, growth opportunities, and market pressures. Cost drivers cover manufacturing, R&D, services, and logistics. External drivers involve legal/regulatory changes, the environment, demographics, and technology. The aim is to quantify procurement's impact on business value and improve its image as a strategic contributor.

1. BUSINESS DRIVERS
 License to Operate
 Reputation
 Cost Reduction & Eco-Efficiency
 Core Market Growth
 Adjacent Market Entry
 Market Pressures & Competitions
 Customer & Consumer Trends
 Ecosystems Opportunities
 Value Chain Opportunities
 Profitable Growth
COST DRIVERS
 Manufacturing (Material,
Components, Assembly,
Flashing Packaging….)
 R&D
 Expert Services
 Third party licenses
 Spare parts
 Transportation
 Custom clearance
 Warehouse & Inventory
 Return & waste
 Warranty
EXTERNAL DRIVERS
 Legal & Regulatory
 Environmental Changes
 Demographic Trends
 Technology Maturity
 Political Pressure
 Social Trends
Organization &
Leadership
 Values
 Vision
 Business Models
CUSTOMER CENTRICITY
Cost Drivers
Business Drivers
External Drivers
Shareholder
Value
Stakeholder
Objective
Procurement
KPIs
A Holistic Approach to
Procurement Value Creation
Sustainable Business
 Economic Value
 Social Value
 Environmental Value
The aim of BVM - Business
Value Management is to
quantify the impact that
procurement can make on a
company’s business values –
and with this suggest how the
image of procurement can
be considerably improved as
an important contributor to
corporate strategy.
BVM™Business Value Management