Discovering and Creating Value in Procurement through Continuous Assessment and Innovation
Murali Krishnan Sundararajan and Rajib Saha - July 17, 2006

Introduction

About a decade ago, the procurement function was viewed primarily as a cost centre and a routine operation. More recently, it has been considered as a revenue-generating centre because of value-adds in the function. The procurement function now plays a key role in terms of improving the organization's performance, and any improvement in procurement operations can bring tremendous results in a firm's financial results. The procurement function's scope is not limited to purchasing, but covers the entire process, from source determination until the material reaches the required destination. Structured frameworks help in improving the operational efficiency of the procurement function by giving an understanding of the needs for improvement...