Many companies miss out on improving their expense ratio by 1 – 3% due to immature procurement functions. Key Strategies for Success: 1. Procurement Pain Points 2. Procurement Objectives 3. Procurement Transformation 4. Transformation Approach
1. Lack of standard procurement process for engaging with suppliers 2. Non-procurement 3. performing procurement activities 4. Poor quality of information on spend with each supplier
Procurement can deliver strategic value if optimized along 4 key objectives: 1. cost 2. compliance 3. quality 4. speed
Current state assessment, strategy deep dive, future state design, and implementation.
Highlights of a best-in-class procurement function including dedicated professionals, clear processes, and advanced tools.
Importance of understanding procurement's value and involving it early in planning and budgeting.