27 November 2003
Poor development of purchasing activities could cost companies a 30 per cent rise in profitability, according to a recent report.
Research into UK cross-sector procurement strategy by strategy consultants PIMS Associates shows marketing and sales often receive up to 75 per cent more investment than purchasing.
Zena James, spokeswoman for PIMS Associates, said: "Few businesses seriously assess their purchasing activity or invest in its development. As a result, companies may be spending money on items they do not need and spending too much on the things they do need."
The research also suggests that applying a strategic approach to a poorly purchased good or service can generate a 20 per cent saving.