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:

 

 

• recognize the value and protection from risk that a strategic procurement approach can bring
• invest in the skills and technologies needed to raise the bar for their internal procurement functions.

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.

To learn more read our Power of Procurement 2 Flash Report (PDF 166 KB) or view the Power of Procurement 2 Prezi.