Welcome back to another installment of Whitepaper Wednesday here on the Purchasing Certification Blog. Today, I’ll be reviewing a whitepaper entitled “Procurement Skills & Profit: The Correlation” from Next Level Purchasing.
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The whitepaper begins with some questions:
- Does the average procurement professional with “high” skill levels save $10,000 (US) per year more than the average procurement professional with “low” skill levels?
- $100,000?
- A million dollars or more?
Those are the types of questions that I’ve heard procurement and senior executives ask over and over. After all, what is it worth to a company to hire or develop top procurement talent?
This whitepaper helps those executives answer those questions. It shares some research that identified a correlation between skill levels and savings and breaks down the average savings by skill level as a percentage of company annual revenue.
The whitepaper provides formulas – and also links to an online tool – that helps an organization:
- Quantify its opportunity to improve profit through better procurement skills;
- Calculate the cost of procurement skills improvement;
- Determine the return on investment of improving procurement skills; and
- Identify the cost to the organization for leaving procurement skills as-is
If you are a procurement leader and want to learn how you can improve your department’s contribution to profit, please feel free to download this whitepaper from the Next Level Purchasing Web site (registration required).
