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Profitable Procurement An Oxymoron Converting An Expense

 
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MessagePosté le: Jeu 6 Juil - 23:58 (2017)    Sujet du message: Profitable Procurement An Oxymoron Converting An Expense Répondre en citant



An oxymoron, defined by the dictionary, is a figure of speech in which apparently contradictory terms appear in conjunction. “Profitable Procurement” and “converting an expense category into a profit center” are oxymoron of the first order. Conventional purchasing departments generate expenses, which are deducted from income, thereby, diminishing profitability.

Preoccupied with “saving money” by leveraging volume to obtain lower prices, purchasing departments neglect opportunities to add to profitability. Savings from lower prices on expense categories such as business essentials do not convey directly to profit, if at all. Obtaining a 10¢ lower price on copy paper or toner cartridges or toilet paper does not produce savings traceable to your bottom line.

An innovative approach suited to the times, PP shifts your purchasing department from a reactive expense producer to a proactive “seller” of your aggregated purchasing volume plus process improvements to a single vendor to contribute quantifiable profits directly to your bottom line via:
•Volume Incentive Rebates;
•Vendor Dividends;
•Business Essentials Expense Reductions; and,
•Employee Productivity Enhancements.

PP is a financial policy, not a purchasing program, designed for nonprofit and for-profit organizations of all size, particularly, those with 100 – 999 employees with fewer resources to invest in purchasing departments.



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