|
Graham Riche of the consultancy division of Profectus Group suggests that in procurement, small should not mean powerless.
Managing growth - Part 2 | Part 1
All too often, however, these non-core areas of business development are overlooked as companies expand. It’s often the case that they continue to be handled on a part-time basis, perhaps by those involved in related functions, such as human resources or finance, but the inherent problem with this is that they are never managed strategically. Non-core business processes, by their very nature, always take second place to core functions, but an ad hoc approach is unsustainable as companies grow and change.
Lack of effective budgetary and procurement control can mean that companies lose out significantly from the beginning, reducing their competitiveness at a critical time in their development. Every organisation – no matter what the size – needs to be aware of exactly what is being spent and where it is going. As Figure 1 shows, indirect costs can represent a significant proportion of the total, and yet the outlay can fail to provide either the quality of service required, or the best value for money. Only when a company is entirely in control of its expenditure can it begin to improve the value of services received, and to benefit from significant potential savings.
More...
If you are not registered with the site, please register now to read the rest of this page.
If you are registered, please sign in to read the rest of this page.
International Consultants' Guide 2002
Copyright © 2002 |
 |
| 
Market Overview