May I know why are you raising this query? Are you student or working professionals? If latter, then what type of work you do? What is the nature of your industry? What type of raw material you purchase in general?
The biggest value that procurement professionals add is by maintain the procurement spend at specific level. This is much easier said than done. To do this it requires great amount of coordination with production and sales, coordination with stores personnel.
Value addition also comes from fostering the collaborative relationship with the suppliers. For this purchase managers need to make their own Vendor Development Plan (VDP).
Value addition comes from implementation of the various tools of strategic procurement. How one time personnel management has transformed into HR Management, same way erstwhile Materials Management has transformed into Supply Chain Management (SCM). SCM requires free flow of material as well as information. No blockage of inventory at any place. By reducing inventory at various stages i.e. inventory of raw material, work in process inventory and inventory of finished goods, procurement professionals reduce the working capital blocked up various stages. Can there be any better "value addition" than this?
In fact "Purchase" management is little misnomer. Ideally it can be called "Savings" department. Every penny saved in purchase straight way goes to the profit.
I handle extensively training programmes on "Purchase and Inventory Management" related subjects. If you wish to know more about my training activities in this field then you may click here and download my profile.
Dinesh V Divekar
20th March 2013 From India, Bangalore