In comparison with average organizations, global leaders realize an efficiency advantage of about 30% and achieve customer satisfaction levels which are 45% higher by using a catalogue system designed along these lines.
The right mix does it: combining the establishment of a shared service center with short-term efficiency measures
Experience in a number of optimization projects has shown that most of the companies which seek to raise their purchasing efficiency exclusively through the establishment of a SSC find themselves confronted with numerous problems during implementation. While it is true that substantial potential can be realized by conducting well-structured projects and paying attention to success factors, projects for the implementation and establishment of a SSC are usually too protracted to be completed in the implementation period allowed by the company‘s management. In contrast, the planning and implementation of smaller, effective automation measures can be carried out more quickly, but at the end of the day do not usually have the desired overall effect. How then can purchasing managers increase efficiency significantly and on the long-term? The answer is the combination of the two measure groups: the establishment of a SSC in conjunction with focused, short-term efficiency measures such as the cataloguing of supplier product assortments and automation of the supplier communication.
This approach will lead to initial successes after only a few weeks. Further successes can be chalked up at regular intervals until the end of the complete program, sustaining the motivation and commitment of management. The investment of resources in the implementation of the measures is rewarding, and the efficiency of purchasing processes will be raised substantially.
Published in DMR 01/2010
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