Daily Archives: September 27, 2013

3 Easy Steps to Take Up To 7% Off Of Your Organization’s Bottom Line Costs!

  1. Mandate Organization-Wide Cooperation with Supply Management on all Spend.
  2. Implement an e-Procurement/P2P solution and Mandate that 100% of Your Spend Goes Through the Platform.
  3. Give Supply Management the Talent it Needs to Apply the Appropriate (Advanced) Sourcing Techniques to all Categories.

It’s that simple. Why?

  1. 70% of revenue is spent on non-labour costs
    as per Proxima’s recent Corporate Virtualization Report
  2. 100% of spend through a single system gets all 70% of the revenue being spent on non-labour costs under management
  3. (Advanced) Sourcing saves an average of 10% to 12% across-the-board on all spend being addressed (as per back-to-back studies from Aberdeen) and 10% of 70% is 7%!

That says an average 1 Billion organization could add up to 70 Million to its bottom line at the end of a year with a proper focus on Supply Management. Supply Management truly is the organization enabler!