Ok, here goes but only take what you require. Procurement contribution followed the hype of the Internet in the 90's this faded and Key Executives had to shif their focus towards cost containment as the "boom of the 90's started to fade. They did not look at top line revenue growth but moved to bottom line profitability, many of them realised they needed a serious program of transformation for the procurement function.

In order for to understand the role more - the first you would need to know is that nothing can happen untill such time as your orginisation has a paradigm shif which moves procurement from an operational level to a strategic level. In order to do this you need to transform the org.

But in the end plain and simple - procurement contributes to the botom line (which nowadays are more important that generating revenue). A simple 3% saving (measured and tangible) of total procurement spend could improve company value dramatically - even more than an increase of 10% in revenue.

The internet is full of research regarding this. Aberdeen, Gartner and the likes

__________________
Jacques Fourie
Director Operations
Wanama Solutions
+27836450618
www.wanama.co.za
jacques.fourie@wanama.co.za