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A company's human resources manager feels that the HR department can obtain indirect services efficiently and that centralizing their purchases through supply management adds no value. Which is of the following is the BEST response supply management can make to these claims?
Correct Answer: A
* Addressing the Concern: The HR manager believes that centralizing purchases through supply management adds no value. To counter this perception, it is essential to demonstrate the tangible benefits that supply management can bring. * Quantifying Savings: By quantifying the savings achieved through procurement's management of indirect spend, supply management can provide concrete evidence of its value. This includes cost reductions, efficiency improvements, and better contract terms. * Data-Driven Argument: Presenting data on cost savings and efficiency gains helps build a strong, fact-based argument that can be more persuasive than subjective opinions. * Collaboration with HR: This approach also shows a willingness to work with HR to improve processes and outcomes, rather than simply defending existing practices. * Reference: This strategy is supported by procurement best practices and strategic sourcing principles outlined in resources such as the Chartered Institute of Procurement & Supply (CIPS) and the Institute for Supply Management (ISM).