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Edition 9 (April 2007)

 

Edition 9 (April 2007)

Our profession is about more than cost-cutting - Price is not the only factor in excellent procurement.

There are times when everyone seems to stop and ask what they are doing and whether there might be a better way. Now seems to be that kind of moment. Several influential people seem to be asking a few basic questions about the purpose of procurement which centre around the debate over cost-cutting. Leading the argument in favour of cost-cutting in this issue is the research group Aberdeen. “Tangible cost savings”, says Aberdeen, basing its claim on a survey of procurement leaders, are “by far the most important value metric”.

On the other side of the table is the Germany-based consultancy BrainNet. In their report, also based on a survey and revealed exclusively in this issue, they say procurement leaders should be responsible for a lot more than savings. Making a point often heard in discussions over the vexed question of producing savings and proving “bottom line results”, BrainNet point out that “you can't go on squeezing the same lemon over and over again”.

more from the Editor...

OPINIONS

Opinion: Aim for the top to add real value Suibscribers only
Procurement is a much more acceptable function these days than 10 or 20 years ago, when the basic understanding of its added value was limited to purchase order management, writes Roland Verdon.

Opinion: In the driving seat Suibscribers only
Many CPOs don't know how much they spend on indirect material or services or which suppliers they use, writes Sven Anders Stegare.

WHAT THE EXPERTS SAY

Enlightened procurement professionals agree that there is usually far more to good purchasing than price alone. But as the new CPO at an organisation where price rules, how do you persuade your team and your board-level managers?

Read what the experts say

PROFILE


Featured Profile: Dr Hugo Eckseler

He has a background in science and an expert understanding of every stage in the supply chain. Mark Whitehead spoke to Dr Hugo Eckseler, CPO at Deutsche Post World Net, about his achievements at the world’s biggest logistics company.

View profile


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