Benchmarking firm finds top companies fielding fewer than one procurement official for every 1,000 total employees
Chapel Hill, NC August 29, 2003 Top companies depend on savvy purchasing tactics to increase supply chain performance measurements, according to research by benchmark and consulting firm Best Practices.
New research by the firm reveals the supply chain practices leading manufacturing companies use to gain a competitive edge. Supply chain research, drawn from executive interviews and surveys of more than 100 top performing companies, includes these findings:
"Optimized supply chain systems allow procurement professionals to focus on rooting out costs at every opportunity." said Keith Symmers, vice president at Best Practices. "Commodity, inventory, and distribution management are constantly under pressure to realize ever increasing gains for the organization."
Chapel Hill, NC August 29, 2003 Top companies depend on savvy purchasing tactics to increase supply chain performance measurements, according to research by benchmark and consulting firm Best Practices.
New research by the firm reveals the supply chain practices leading manufacturing companies use to gain a competitive edge. Supply chain research, drawn from executive interviews and surveys of more than 100 top performing companies, includes these findings:
- Top-performing procurement departments run their organization with fewer than one procurement official for every 1,000 total company employees. These lean organizations also demonstrate superior on-time delivery, lead time and other supply chain performance measures, indicating streamlined and automated systems that eliminate department waste, lower costs, and deliver outstanding customer service.
- Top-performing procurement departments support the realization of more than $150 million in revenue per procurement employee. Coupled with minimized supply chain costs, these organizations are having a profound impact on corporate profitability and shareholder value.
- Profiled companies claim purchasing savings of up to 25 percent off retail/un-discounted prices through diligent negotiation (not including volume discounts or similar reductions offered to each customer).
"Optimized supply chain systems allow procurement professionals to focus on rooting out costs at every opportunity." said Keith Symmers, vice president at Best Practices. "Commodity, inventory, and distribution management are constantly under pressure to realize ever increasing gains for the organization."
