What is the Priority of Procurement in your Organization?
Posted on Thu, Jan 19, 2012 @ 01:08 PM
How important is the role of procurement in your organization today? Is it part of the stratetic decision making process or still relegated to the back office? "Making Procurement a 2012 Priority". a new article in the Procurement section of SupplyChainDigital.com website offers concise reasons as to why procurement is essential and should be a priority to businesses in today's competitive environment.
A new Capgemini survey found that more than 70 percent of purchasing functions now report directly to boards of directors, and more than a quarter report directly to chief executive officers, further proof that procurement is becoming a leading factor in improving an organizations bottom line.
When it comes to prioritizing procurement, the article recommended basic steps that should be followed in order to establish a cost effective and efficient program. We would add that these are great steps, make perfect sense, and are vitally important when implementing any change in an organization. The shortened version is to:
We would like to add to this article the importance of improved procurement technology that is now a major consideration in the re-prioritization of the procurement function. Automation of the procurement process increases efficiencies, increases accuracy and makes spend visible to key C-level managers. Good procurement technology will enable all of the above listed steps and ensure an effective and efficient pro-active change for an organization.
For more information about eProcurement User Adoption, download our white paper, "First Steps of eProcurement Adoption."
