On procurement

We seem conditioned to value the visible result over the long preparatory process, the house over the foundations, the gain earned – no matter how trivial – over the pain avoided – no matter how great.

A friend from China used to work in supply chain management. She has exceptional procurement skills, and saved her company millions of dollars. Her achievements barely received acknowledgement. Meanwhile, when the sales team brought in a few hundred thousands in contracts, everybody cheered. Eventually, she quit.

A balance sheet has two sides, income and expenses. Yet the dominant wisdom I absorbed from business people is, focus on income. The Business Model Canvas presents elegant symetry between cost and revenue structure, but most of the tips and case studies I read celebrate clever ways of bringing in more money.

In our age of abundance, we do not value temperance. There may be reason for it. After all, a danger avoided offers no chance for heroics. After complex research, modelling and bargaining, we did not incur a certain sum – but were we ever going to pay that much? The risk did not manifest, was it through complex strategy, or pure luck? And who can tell if it was ever even present? My sale, however, the crisis I solved, the monster I slayed, that’s concrete, and should be dutifully rewarded.

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