{"id":2531,"date":"2008-10-08T14:02:00","date_gmt":"2008-10-08T14:02:00","guid":{"rendered":"https:\/\/www.certitrek.com\/nlpa\/2008\/10\/08\/whitepaper-wednesday-profit-growth-through-procurement\/"},"modified":"2021-07-16T04:10:37","modified_gmt":"2021-07-16T08:10:37","slug":"profit-growth-through-procurement","status":"publish","type":"post","link":"https:\/\/www.certitrek.com\/nlpa\/blog\/profit-growth-through-procurement\/","title":{"rendered":"Profit Growth Through Procurement"},"content":{"rendered":"<p>We found great takeaways from an SAP white paper called \u201cEnabling Profitable Growth Through Procurement: Transforming The Sourcing &amp; Procurement Organization.\u201d<\/p>\n<p>It started with the typical high-level, fundamental stuff about procurement contributing to competitive advantage. It then focused on how much harder it is to get Sales to contribute the same degree of profit impact as Procurement.<\/p>\n<p>This was what the publication advocated:<\/p>\n<ul>\n<li>Aligning the sourcing and procurement organizational model to meet business needs<\/li>\n<li>Managing spend and suppliers strategically<\/li>\n<li>Focusing on employees<\/li>\n<li>Implementing cutting-edge technology<\/li>\n<\/ul>\n<p>Here&#8217;s an interesting excerpt:<\/p>\n<blockquote><p><em>\u201cAfter acquiring the right people, top-performing organizations train and nurture their employees, offering educational and certificate programs to enhance their skills\u2026almost 62% of sourcing and procurement employees [in leading organizations] had formal training in negotiations, compared to 45% for other companies.\u201d<\/em><\/p><\/blockquote>\n<p>Here&#8217;s my takeaway from this: Sixty-two percent seems a bit low. That means that over 1\/3 of the people negotiating procurement contracts aren\u2019t even trained!<\/p>\n<ul>\n<li>Some interesting research results were cited, including:<\/li>\n<li>how the average company has centralized about 69% of its sourcing and procurement functions (hopefully that doesn\u2019t mean PO cutting) and;<\/li>\n<li>how the study found that companies implementing a category-aligned organizational approach were more efficient in terms of full-time equivalents per billion in spend.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/www.certitrek.com\/nlpa\/individuals\/membership\/\">Become a member of one of the world\u2019s largest procurement associations today.<\/a><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Recommended Reading<\/strong><\/p>\n<ul>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/courses\/savings-strategy-development\/\">Savings Strategy Development<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/cost-savings-strategy\/\">Cost Savings Strategy<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/whats-the-role-of-your-purchasing-strategy\/\">What\u2019s the Role of Your Purchasing Strategy<\/a><\/li>\n<li><a href=\"https:\/\/www.certitrek.com\/nlpa\/news\/purchasing-articles\/cost-savings-definitions\/\">Cost Savings Definitions<\/a><\/li>\n<li><a href=\"https:\/\/lms.nextlevelpurchasing.com\/\">Category Savings Assessment Questionnaire<\/a><\/li>\n<li><a href=\"https:\/\/lms.nextlevelpurchasing.com\/\">Leveraging Procurement for Fiscal Impact<\/a><\/li>\n<\/ul>\n<p>Visit <strong><a href=\"https:\/\/lms.nextlevelpurchasing.com\/\">NLPA Learning<\/a><\/strong>, the new home to all of our certifications and online courses. The Learning site also includes learning resources, including live and on-demand webinars, publications and reports, articles, templates, white papers, and much more!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We found great takeaways from an SAP white paper called [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":4138,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,1,95],"tags":[],"class_list":["post-2531","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cost-reduction","category-procurement","category-procurement-operations-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.4 (Yoast SEO v19.13) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Profit Growth Through Procurement - Next Level Purchasing Association (NLPA)<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.certitrek.com\/nlpa\/blog\/profit-growth-through-procurement\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Profit Growth Through Procurement\" \/>\n<meta property=\"og:description\" content=\"We found great takeaways from an SAP white paper called [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.certitrek.com\/nlpa\/blog\/profit-growth-through-procurement\/\" \/>\n<meta property=\"og:site_name\" content=\"Next Level Purchasing Association (NLPA)\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/NextLevelPurchasing\/\" \/>\n<meta property=\"article:published_time\" content=\"2008-10-08T14:02:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-07-16T08:10:37+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/11\/nlpa-images-148.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1600\" \/>\n\t<meta property=\"og:image:height\" content=\"1067\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Galo Matagay\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:site\" content=\"@nextlevelpurch\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Galo Matagay\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/profit-growth-through-procurement\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/profit-growth-through-procurement\/\"},\"author\":{\"name\":\"Galo Matagay\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#\/schema\/person\/72d094fab77892483dfa6e061cb27eaa\"},\"headline\":\"Profit Growth Through Procurement\",\"datePublished\":\"2008-10-08T14:02:00+00:00\",\"dateModified\":\"2021-07-16T08:10:37+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/profit-growth-through-procurement\/\"},\"wordCount\":289,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/#organization\"},\"articleSection\":[\"Cost Reduction\",\"Procurement\",\"Procurement Operations Management\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.certitrek.com\/nlpa\/blog\/profit-growth-through-procurement\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/profit-growth-through-procurement\/\",\"url\":\"https:\/\/www.certitrek.com\/nlpa\/blog\/profit-growth-through-procurement\/\",\"name\":\"Profit Growth Through Procurement - 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