Business value drivers Procurement impact on business growth margin and capital

1. Business Value Management
 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 report suggest how the image
of procurement can be considerably improved as an
important contributor to corporate strategy.
How can procurement demonstrate
its impact on the main measures of
business success?
This is a question that all CPOs face…
It is very difficult for CPOs to measure their
team’s impact on the business, either
because the organizational structure is
complex and they can’t capture all the
benefits that are being delivered, or simply
because they don’t always know where
savings are being reinvested.
Reza Hagel
TMT Senior Advisor
“
BVM™Business Value Management

2. 2019CopyrightFOCUSInternationalAdvisoryServices
The Drivers of Value Creation
1. Accelerating free cash flow
2. Reducing costs
3. Reducing risk and the cost of capital
4. Increasing long-term business value
5. Identifying opportunities across value chain and ecosystems
“You have to understand accounting and
you have to understand the
nuances of accounting.
It is the language of business!
Warren Buffet
Business Value Drivers
BVM™Business Value Management

3. Procurement
Impact on business Growth,
Margin and Capital
 BVM underlines the potential procurement impact on value
creation or sales growth. The quality of a relationship with a
key supplier is fundamental in terms of obtaining innovation,
increased market share, lower prices and speed to market.
Figure (Below) highlights the main drivers for procurement
value creation
“In the broadest context, the goal is to seek
enlightenment – however you define it.
Steve Jobs
BVM
BVM™Business Value Management
2019 Copyright FOCUS International