World-class companies use procurement as a source of competitive advantage but many organizations still under-manage this treasure chest because they lack a predefined, systematic playbook for reducing costs and identifying and implementing necessary improvements.By taking a more comprehensive approach to what they buy and how they buy it, companies can reduce cost and free up cash. Full potential savings programs can average 8 to 12 percent of total procurement costs and as much as 40 percent for some categories. Typically, these are sustainable cost savings that can be followed by a further two to three percent cost reduction annually. Furthermore, strategic procurement efforts often result in shorter cycle times and supplier-led product innovations.Despite the increasing recognition of procurement's importance, a recent Bain survey found a growing gap between what corporate leaders expect and what their supply management teams are able to deliver:Fifty percent of supply management executives interviewed considered their procurement organizations ineffective;Sixty-five percent admitted they don't measure procurement's performance in creating economic value and are unable to link procurement savings directly to their P&L.F.C HOOSEKI LLC procurement consultants have worked on hundreds of engagements globally across all major industries, helping clients create world-class procurement organizations that can reduce their cost base, strengthen their supplier base and make the results stick.
