Procurement issues 'must be considered to achieve cost reductions'

Companies will need to place a larger focus on reforming their procurement processes in order to achieve necessary cost reductions in 2012.

This is according to William Gindlesperger, chairman and chief executive officer of business technology firm e-LYNXX, who noted that procurement has become a key element of business strategy, rather than a back-office concern.

As such, those wishing to achieve savings through more effective supply chains should seek to plan their purchasing better, while ensuring transparency and accountability are prioritised.

Mr Gindlesperger also highlighted the importance of welcoming innovation and new approaches, while ensuring that all elements of the decision-making process are properly documented.

"Every corporate-level executive should take notice and make a 2012 resolution to improve bottom-line results by controlling expenses with procurement innovation that will bring antiquated procurement processes into the 21st century," he added.

Last month, Supply Management highlighted a report from Everest Group which predicted a rise in procurement outsourcing this year.

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Categories: Functional Practices