Cost Reduction Guide Part 2: Driving excellence through Procurement Transformation

Has your company experienced a change in ownership structure, a change in senior management, or a change of leadership in the procurement function? 

These are typical events that trigger the drive and need for procurement excellence and ignite the related transformational journey. However, the need can also arise more simply from an initiative to hit a certain EBITDA target. In that way, a Procurement Transformation can become a significant low-pain and high-gain contributor to answering internal and external challenges.

Whatever the trigger, a Procurement Transformation Program enables CFOs/COOs/CPOs to position or further strengthen procurement as a strategic value generator in their organizations. The list of positive outcomes of an excellent procurement function are numerous and significant.

They can include but are not limited to:

• A steady state 3-5% year-on-year sustainable cost improvement, with up to 10:1 ROI
• Competitive market advantage by being the first to harness supplier innovation
• Ability to react quickly and effectively to mitigate risks of unforeseen events
• Enabling profitable company growth through fast integration of acquisitions
• Freeing up significant cash for investment

We are here to help, and you can begin by downloading our free Procurement Transformation Guide.