The Value Mirage: Why Procurement Keeps Looking in the Wrong Place

In Part I of this two-part Procurement Pathways series, host Stacy Joslin sits down with Omid Ghamami, President of the Procurement and Supply Chain Management Institute, and Darshan Deshmukh, President of ProcureAbility. Together, they challenge one of procurement’s biggest misconceptions: that negotiation creates most of the value.

Drawing on decades of procurement leadership experience, Omid and Darshan explore why many organizations focus on savings only after costs have already been embedded in the business. They examine how procurement teams can create greater impact by shaping requirements, reducing complexity, and aligning more closely with business objectives long before supplier negotiations begin.

Throughout the conversation, they discuss the hidden costs of over-engineered specifications, excessive customization, and outdated procurement practices. They also challenge traditional zero-sum negotiation approaches, arguing that stronger collaboration with suppliers and stakeholders can unlock greater value for all parties involved.

Key insights for procurement leaders include:

• Why the greatest opportunities for value creation exist before negotiations begin.
• How complexity, over-specification, and poor demand definition increase costs and reduce efficiency.
• Why procurement teams should challenge requirements, not just supplier pricing.
• How collaborative supplier relationships can create value beyond traditional negotiations.

Listen to Stacy, Omid, and Darshan as they share practical ways to unlock more value. Along the way, they discuss how better demand planning, stronger supplier partnerships, and a focus on outcomes can improve procurement performance.

To continue the conversation, explore our Procurement Reality Check: 6 Myths Holding Procurement Back and the True Drivers of Enterprise Value infographic, developed in partnership with Omid Ghamami. We challenge long-held beliefs about procurement value creation, negotiation strategies, supplier management, and strategic procurement, which are explored in detail throughout this episode.

About our guests:

Darshan Deshmukh

Darshan Deshmukh has extensive global operations and delivery experience in the managed services and advisory fields. He has deep expertise in building global programs focused on procurement, strategic sourcing, category management, and supply chain/procurement transformation.

Prior to joining ProcureAbility, Darshan spent most of his career building large-scale, global delivery operations. He spent a decade in a series of global leadership positions in IBM’s Integrated Supply Chain organization and then joined Denali Sourcing Services as operations leader and was instrumental in establishing and growing the company’s global delivery capability. After Denali’s acquisition integration with WNS, Darshan transitioned to tech start-ups, OpenGov and Icertis, where he built their global professional services and customer success organizations. Darshan has worked with global clients in high-tech, financial services, manufacturing, retail, utilities, and healthcare/pharma.

Darshan holds an undergraduate degree in Mechanical Engineering, a graduate degree in supply chain from Penn State, and an MBA from MIT Sloan School of Management. He loves international travel, movies, and everything food, and divides his time between Seattle and Palm Springs.

Omid Ghamami

Omid Ghamami, MBA, CPSCM™ is a global procurement strategist, speaker, and consultant with 18 years of experience at Intel Corporation, where he led Intel’s Global Corporate Purchasing Operations organization with a $16 billion scope.

Since 2012, Omid has been recognized as a global thought leader in procurement, supply chain, and negotiations. He has worked in 31 countries and has had nearly half of the Fortune 100 as clients through training or consulting engagements, as well as the 50 CPOs of the U.S. Author of two best-selling procurement books, he has published numerous articles in leading industry journals, and has been featured in both Fortune Magazine and The Economist for his insights on Fortune 500 procurement strategies. He has received more than a dozen industry awards recognizing him as a leading global thought leader in procurement and supply chain.

Omid holds an MBA from the University of California, where he served as class president. He founded the Certified Purchasing and Supply Chain Manager (CPSCM™) program and is President of the Procurement and Supply Chain Management (PSCM) Institute.