Transforming Procurement from Old School to New Age.
The traditional procurement model does not help
organizations achieve additional and sustainable
financial targets. The CFO is asked to use the
procurement department as an internal value partner to
address and discuss new ways of spending the budget;
often called value sourcing.
Cost savings of up to 25-30% can be realized in many
industries such as automotive, consumer goods, energy &
utilities, financial services and engineering &
manufacturing. In this viewpoint, Arthur D.Little
showcases three project experiences from the
telecommunication and travel & transportation industry
to explain the goals, mode of operation and the impact
of value sourcing. pdf 2013