29 September 2008 | Paul Snell
Few companies have a formal link between savings made by procurement and the profit and loss of the business.
According to the latest SM100 poll, 62 per cent of purchasers do not make a formal connection between their savings and the bottom line.
This compared with 38 per cent who do make the link.
While many buyers said their department demonstrated what their savings meant to the business, these were not tied formally to the company's overall results. Those that did make the link said it gave purchasing greater integrity.
The ability to connect cost savings to bottom-line performance was a key factor in the transformation of purchasing at Homeserve, winners of this year's overall CIPS SM award (see page 22).