Development of purchasing can boost profits

27 November 2003
More news

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.

SMnov2003

LATEST
JOBS
Calderbridge, Seascale
£52,518 - £64,233
LLWR
London
GBP80000.00 - GBP95000.00 per annum +
Cedar
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE