With the right investment in procurement, companies enjoy more revenue growth.
In today’s business world, a single-minded focus on reducing input costs is no longer enough. Companies that take a strategic approach to procurement innovate more new products, get them to market faster and enjoy more revenue growth as a result.
But what investments do you need to make to transform your procurement functions so it generates clear value and more top-line growth? A 2014 KPMG survey of procurement and C-Level executives shows that building these broader capabilities requires companies to:
For many procurement executives, gaining buy-in for these investments may be a struggle. The survey found that 73 percent of C-level executives do not believe procurement processes add real value to their organization.
The research shows that investing in transforming procurement’s value, risks, skills and technology can really pay off in terms of top and bottom line growth.
© 2020 Copyright owned by one or more of the KPMG International entities. KPMG International entities provide no services to clients. All rights reserved.
KPMG refers to the global organization or to one or more of the member firms of KPMG International Limited (“KPMG International”), each of which is a separate legal entity. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. For more detail about our structure please visit https://home.kpmg/governance.
Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.