Replace Purchasing Executives with Robots

If Price is everything, we can replace Purchasing people by robots or computers.

The title begs the question: Is price everything? We find many companies and their executives bemoaning the fact that price is everything. The Purchasing people are only looking at prices.

My first reaction is in that case purchasing people can be replaced by robots, if all they are interested in is price. On reflection, why not also replace the selling executives who think price is everything?

Imagine this kind of an environment. Prices will come down because both purchasing and selling executives when robotised will cost less.

That makes no sense to me. Value is side-lined. Robots will be saying I can sell anything at a price.

Companies will say I will buy anything at a lower price.

Are we moving to this nonsensical situation? People like me who were taught to sell on value and relationship will become extinct. Purchasing guys will only want a number and no dialog. There will be no value chain and the buying company will also forget to sell on value and only sell on price. Almost like the grim looking Soviet buildings going decrepit in all parts of the former Soviet Union: In Estonia, in Georgia, Romania and so on.

Should bean counter type purchasing people look at value? And should sellers have the courage to position themselves in the value chain and discuss the value which will prevent the buyer from becoming a commodity?

Should Purchasing people and sales people collaborate to become value developers rather than price cutters? Can they look at latent value and see if it can be converted to real value or should they look only at price?

Your call!

Mahajan@CustomerValueFoundation.com

 

Gautam Mahajan,
President, Customer Value Foundation and Inter-Link India

Founder editor, Journal of Creating Value jcv.sagepub.com
K-185 Sarai Jullena, New Delhi 110025
+91 98100 60368, 011-26831226
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
http://www.interlinkindia.net

Twitter @ValueCreationJ

Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies.

Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person’s role in Creating Customer Value and getting shareholder wealth and Value.

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