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Procurement: the case for clout

In: The Purchasing Chessboard

Author

Listed:
  • Christian Schuh

    (A.T. Kearney Ges.m.b.H.)

  • Joseph L. Raudabaugh

    (A.T. Kearney Inc.)

  • Robert Kromoser

    (A.T. Kearney Ges.m.b.H.)

  • Michael F. Strohmer

    (A.T. Kearney Ges.m.b.H.)

  • Alenka Triplat

    (A.T. Kearney Ges.m.b.H.)

Abstract

Let’s get started with a message to analysts: For the benefit of your stakeholders, encourage your corporation to install a heavyweight Chief Procurement Officer (CPO). The case for this is simple. If a company spends between half and two-thirds of its revenue on purchased goods and services, you better have someone with political clout running the show. Just looking at how well a company — any company — did in the 2008 economic cycle should be a convincing enough argument. Those firms with a CPO equal in rank to the head of sales, head of R&D, or head of production did consistently better than those that relegated procurement to the lower echelons.

Suggested Citation

  • Christian Schuh & Joseph L. Raudabaugh & Robert Kromoser & Michael F. Strohmer & Alenka Triplat, 2012. "Procurement: the case for clout," Springer Books, in: The Purchasing Chessboard, edition 0, chapter 1, pages 1-9, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4614-2221-1_1
    DOI: 10.1007/978-1-4614-2221-1_1
    as

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