Procurement gains status in US as a result of the recession

08 Dec 2010

Source:  Supply and Demand Chain
Decentralized buying and low-technology/no-tech purchasing operations are being replaced as US organizations look to procurement for savings according to William Gindlesperger, writing as a guest columnist for Supply and Demand Chain.
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, according to the 2010 Global Chief Procurement Officer Survey by Capgemini Consulting. This is not surprising according to Gindlesperger, because the recession, while wreaking havoc on the US economy, has elevated the status of procurement in organizations. That's because procurement is one of the last remaining areas where an organization can find substantial savings.

With the rise in procurement's status, two procurement practices are being replaced — decentralized buying and low-technology/no-tech operations. Centralization is occurring to gain economy-of-scale buying advantages, and procurement technology innovation is being adopted to streamline the procurement process. Both contribute to more spend control and greater savings.

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