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Why Is Procurement Not Optimized?

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The opportunity in Procurement exists because in many companies, Procurement is not optimized. There are a number of reasons for this:

 Procurement comes from an administrative background, and oftenlacks the remit to take a strategic or proactive approach.

 Procurement therefore doesn't have the right cross-functional operating model, and sometimes adopts unhelpful mindsets.

 This results in an under-investment in people and tools, creating a vicious cycle of under-performance and under-investment.

 The end result is a spend base that's not optimized—not aggregated across locations, and with inconsistent specifications and dated supplier relationships.

Let's explore some of these points in a little more detail.

Profit from Procurement

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