𝐒𝐭𝐫𝐚𝐭𝐞𝐠𝐢𝐜 𝐏𝐫𝐨𝐜𝐮𝐫𝐞𝐦𝐞𝐧𝐭: 𝐂𝐨𝐬𝐭𝐬, 𝐖𝐚𝐫𝐫𝐚𝐧𝐭𝐢𝐞𝐬, 𝐚𝐧𝐝 𝐂𝐨𝐧𝐭𝐫𝐚𝐜𝐭 𝐂𝐨𝐦𝐦𝐮𝐧𝐢𝐜𝐚𝐭𝐢𝐨𝐧

In recent years, we have witnessed the growing importance of Procurement within organizations. Once seen primarily as a function focused on purchasing products and services, Procurement has evolved into a strategic area of development, improvement, and supply chain management.

Traditionally, Procurement is often associated with price negotiations aimed at staying within or below a defined budget. However, when approached strategically—recognizing its role in business consolidation and brand positioning—it becomes clear that Procurement goes beyond negotiating prices. It involves analyzing the Total Cost of Ownership (TCO).

TCO requires identifying and planning for the overall operational efficiency of a project across the supply chain. By doing so, Procurement directly contributes to profitability, strengthens trust with business partners, and enhances the brand’s reputation with end consumers.

Key strategies related to TCO include the following:

✔️ Lifecycle cost assessment: 

This extends beyond the initial acquisition price to include all costs incurred during the lifecycle of a product or service, such as maintenance, replacement, and disposal.

✔️ Medium- and long-term cost evaluation: 

Factoring in elements such as interest rates, potential charges for replacements or substitutions, and maintenance requirements is essential for safe and effective acquisition planning.

✔️ Warranty as a strategic partnership:

Warranties are often seen as instruments of customer satisfaction, but they represent much more: a foundation for strong partnerships between buyers and sellers.

The seller commits to delivering quality products on time while providing reliable after-sales support, reinforcing trust and accountability.

The buyer, in turn, assumes responsibility for proper use of the product according to the manufacturer’s recommendations—or for transmitting these guidelines to end users—thereby protecting the product’s useful life and reducing waste or premature deterioration.

✔️ Clear communication in contracts:

Clarity and precision in contracts are critical. Negotiations must clearly outline conditions that ensure continuity and quality throughout the contract term, safeguarding not only the buyer’s rights but also long-term satisfaction and trust.

Although warranties are often treated as implicit in negotiations, they are indispensable in scenarios such as high-volume agreements, contracts exceeding six months, or projects affected by monetary fluctuations (e.g., exchange rates in international trade), climate impacts on harvests, or seasonal demand. In such cases, warranty clauses must be explicitly detailed and emphasized in Procurement contracts.

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