What does Procurement Deliver?
What does Procurement Deliver? This latest study by AT Kearney, Supply Management and CIPS has some very interesting incites into the contribution of Procurement and how it's benefits are often not recognised.
According to this latest study by AT Kearney, Supply Management and CIPS, Procurement delivers 7 times it's return on investment, but in many organisations the contribution of Procurement is not recognised by their senior management teams. Building the Brand of Procurement and Supply said that middle-tier performers generate around five times the investment and cost of their supply management assets. However they have not improved their productivity since 2011. It also said that almost 15 per cent of buying teams are “out of mind or inconsequential players” to the CFO community and 75 per cent have “mixed and yet-to-be developed brands”. The study found leading teams generate almost £1 million in financial benefits per procurement employee each year. The report said: “Most organisations do not have the reporting and tracking capabilities to provide ongoing, accurate visibility of procurement’s value-creating activities. They simply do not have a grasp of – and therefore cannot manage – their resources to optimise them with the same level of precision as is typically done in other functions.
According to this latest study by AT Kearney, Supply Management and CIPS, Procurement delivers 7 times it's return on investment, but in many organisations the contribution of Procurement is not recognised by their senior management teams. Building the Brand of Procurement and Supply said that middle-tier performers generate around five times the investment and cost of their supply management assets. However they have not improved their productivity since 2011. It also said that almost 15 per cent of buying teams are “out of mind or inconsequential players” to the CFO community and 75 per cent have “mixed and yet-to-be developed brands”. The study found leading teams generate almost £1 million in financial benefits per procurement employee each year. The report said: “Most organisations do not have the reporting and tracking capabilities to provide ongoing, accurate visibility of procurement’s value-creating activities. They simply do not have a grasp of – and therefore cannot manage – their resources to optimise them with the same level of precision as is typically done in other functions.