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Supply Management.
The trend for relocating parts of added value and development to suppliers is changing the demands placed on procurement management. Nowadays, external labour costs often make up more than 50% of the total costs of industrial enterprises and more than 30% or service companies.
However, procurement does not generally receive the much needed attention it requires from management. Even though each and every Euro saved does indeed have a directly impact on a company’s overall results. Furthermore, a well-managed procurement department provides the key to increased quality and flexibility.
Our experience in procurement management shows that the room for improvement in increasing purchasing successes is not exploited to the full. Not all methods of base price reduction are used for generating economisations. When it comes to purchasing efficiency itself, means of cost reduction are often not even considered. The target has to be automating a maximum of administrative actions in order to make room for strategic purchasing and creative thinking.
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Our experience in procurement management show that the room for improvement of in-creasing purchasing successes is not used to the full. Not all methods of base price reduc-tion are used for the means of generating economisations. Concerning purchasing effi-ciency itself, means of cost reducing are mostly not even considered. The target has to be automating a maximum of administrative actions in order to make room for strategic pur-chasing and creative thoughts.
