Procurement insights
Succeeding with the purchasing agenda may well be one of the most significant steps any organisation will take in the coming years. It can be the key to success in our global economy; sourcing the best suppliers in remote locations, generating savings through compliance with corporate contracts and accelerating the delivery of bottom line results.
Depending on the business segment, the total purchasing costs can amount to 40-60 per cent of an organisation’s total revenue. Our experience shows that the combined business effects of running both a source- and procure-to-pay program deliver cost savings ranging from 4-8 per cent of the total purchasing value.
Insight into the state of efficient purchasing
Though the initial rush of a successful sourcing event might seem like winning the world championship, unless combined with a strong procurement initiative the savings identified will never materialise. And the same goes for any successful compliance initiative, without good sourcing you end up paying too much, even though your organisation is compliant and acting in line with the corporate contracts negotiated.
Different companies face different challenges and in this section we will continuously publish insights into new trends and developments in purchasing, as well as highlight the key issues at hand which in effect determine the success or failure of different purchasing agendas.