After nearly going under in the 90s, IBM overhauled its procurement organization, centralizing it and even basing it overseas, in China. Today it manages $57 billion in spend and even other companies’ procurement operations.
Deliberate off-contract purchasing is the most difficult maverick spend for procurement to address. It is thus critical to understand the motivations and behaviors of these purchasers before a possible knee-jerk response.
Scott Paul, president of the Alliance for American Manufacturing, is feeling bullish. As he sees it, the profit margins for offshoring manufacturers are shrinking, and close-proximity manufacturing offers customers flexibility and customization.
Which group in your organization is leading the charge into the networked economy?
It’s not likely the treasury organization. And why should it?
That is becoming a $100 million question.
For many treasurers, improving liquidity through … [Read More...]
This article courtesy of My Purchasing Center.
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