With prices rising, it may be time to take a closer look at procurement. For many businesses, the procurement process represents a valuable opportunity to save money and reallocate resources. In a recent Bain & Company executive survey, more than half of the respondents said cost pressures constrain their ability to make strategic investments. Considering that procured costs can represent 25 to 60 percent of a company’s total costs, it’s well worth examining how this process could be managed more effectively.
What is the ROI? Last time, I highlighted some of the features of the fully-automated procurement process. As attractive as the various features sound, the real synergy occurs when Buyers experience real savings. In today’s sluggish economy, in general, and because of dramatically contracting reimbursements for health care providers, specifically, ROI must be real and attainable.