Why We Love Procurement & Supply Chain Management (And You Should, Too!) Part 3

January 19th, 2015

The CPO increasingly has the ear of the CEO and CFO

 

Today’s post is written by Heather Powell, CFT Director & Project Manager at SafeSourcing Inc.

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Sourced from: http://buyer.sellerinsights.com/2012/12/12/8-reasons-to-love-procurement/

Reason 3: It is strategic!

The CPO increasingly has the ear of the CEO and CFO – it has direct access to power. That is because few managers have the potential to impact on the bottom line in the way that the head of procurement/supply management can.

As every MBA (and indeed every salesperson) knows; the way to improve the bottom line in a time of low growth is to cut costs, slim line production and drive efficiencies generally. This is something that procurement and supply chain managers have done very well.

At conferences procurement managers proudly boast of savings of millions delivered from procurement initiatives, with savings of 15-35% regularly being quoted. However, its impact on business performance goes well beyond cost savings.

Supply chain management is strategic because it matters to the longer term performance of the business. It will be called upon to support the implementation of almost any strategic initiative within the business and not just those that involve procurement.

Stay tuned tomorrow for Part 4.

For more information on how SafeSourcing can assist you in exploring your procurement solutions for your business or on our “Risk Free” trial program, please contact a SafeSourcing Customer Service Representative.  We have an entire customer services team waiting to assist you today.

We look forward to your comments.

 

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