Procurement’s Role in Corporate Performance

(Sourcing Innovation, 2 February 2012)

In Brief: Supply chain managers and procurement executives should demonstrate the improvement opportunities their functions have on overall corporate revenue and cost reduction to garner executive support for their strategies.

Our View: Procurement can ensure stakeholder buy-in for bottom line contributions by collaborating with business partners on standardized and well-documented savings tracking programs that will require limited participation from them when implemented. To ensure staff has enough time to work on higher value projects, leading procurement organizations also regularly and transparently assess the relative value of their activity mix and reprioritize accordingly.