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Your lack of focus on Procurement is limiting your profits. Multiply them by making Procurement a company-wide priority.

Profit from Procurement: Add 30% to Your Bottom Line by Breaking Down Silos delivers an insightful, compelling, and fresh take on a subject that typically comprises 50% of a business's total costs: Procurement.

Alex Klein, Simon Whatson and Jose Oliveira, leaders at the world's largest dedicated Procurement consultancy, highlight the limitations of the traditional, functionally siloed approach to Procurement, and demonstrate how significant EBITDA gains can be made by lifting Procurement out of the back office and enabling it to fundamentally reset a company's cost base. Its accessible, frank, and refreshing style, combined with practical, actionable advice, based on the authors' extensive real-life experience, make it a must read for any executive looking to make an impact through Procurement.

The book offers readers a practical and concrete roadmap to optimizing, integrating, and deploying a company’s Procurement capabilities, creating a less siloed, more impactful function. Readers will learn how to:

  • Plan their company's Procurement transformation
  • Reskill teams for the coming change
  • Reposition the Procurement function to become the driver of cross-functional change
  • Integrate new topics such as digitalization and sustainability into their Procurement roadmaps
  • Ensure that Procurement efficiencies are fully reflected in bottom-line profits

Perfect for C-Suite executives and Procurement professionals at companies of all sizes, Profit from Procurement belongs on the bookshelves of every employee and leader tasked with company operations and profit strategy.

Table of Contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Dedication
  5. 1 INTRODUCTION: Why Procurement, and Why Now?
    1. What Follows Is a True Story
    2. Procurement Is a Company's Number One Cost, Making It a Huge Profit Lever
    3. Why Is Procurement Not Optimized?
    4. Remit
    5. Mindset
    6. Vicious Cycle…and Opportunity
    7. The Birth of Strategic Sourcing—Dawn of a New Era…or Not?
    8. Bad Best Practice
    9. Why Now?
    10. About This Book
  6. 2 AMBITION: Ensuring You Are Set Up for Success
    1. A Dirty Procurement Word
    2. Walk, Then Run
    3. What to Aim For
    4. Getting Buy-In
    5. Achieving Your Ambition: Customer Focus
  7. 3 SOURCING EXECUTION: Making Sure That the Engine Room Delivers
    1. Building the Baseline / “Profiling the Category”
    2. Conducting a Supply Market Analysis
    3. Drawing Up the Sourcing Strategy
    4. Executing an RFP Event
    5. Conducting Supplier Negotiations and Selection
    6. Sourcing Tools
    7. Savings Credibility
    8. Sourcing Gates
    9. Time with Stakeholders
    10. Program Management
    11. Execution
    12. After the Storm
    13. Sourcing Is the Engine Room
  8. 4 PEOPLE: Building a Winning Procurement Team
    1. Who Do We Need in Procurement?
    2. The CPO
    3. Today's Old School Procurement Skillset
    4. Tomorrow's Procurement Team
    5. Attraction and Retention of Talent
    6. Being Bold When Hiring
  9. 5 OPERATING MODEL: Making It Work in Practice
    1. Documenting the Future Model
    2. The Center-Led Approach
    3. Shifting from Reactive to Proactive
    4. Organic Growth to a Proactive Focus
    5. Isn't This Just Agile?
  10. 6 CROSS-FUNCTIONAL CHANGE: Repositioning the Function as a True Partner
    1. Why Is Cross-Functional Change Management Important?
    2. Procurement Often Lacks the Required Skills and Mindset
    3. How Do We Do It Effectively?
    4. Specific Functions
    5. What Can We Learn from the Consultants?
    6. Conclusion
  11. 7 SUPPLIERS: Engaging Effectively
    1. Supplier Management—The Traditional Approach
    2. The Strategic Supplier—a Competitive Advantage
    3. Shifting the Mindset
    4. Beware the RFP
  12. 8 NON-SAVINGS PRIORITIES: Balancing Your Objectives
    1. Is There More to Procurement than Savings?
    2. Consult the Business First
    3. The Procurement Balanced Scorecard
    4. Sustainability
    5. Get the Right Sustainability Key Performance Indicators
    6. Embarking on Your Sustainability Program
  13. 9 SAVINGS REALIZATION: Stemming the Leaks
    1. What Is a Saving?
    2. The Importance of Data and Baselining
    3. Savings Need to Be Delivered Before They Can Be Measured
    4. The CFO Needs to Be Procurement's Best Friend
    5. TINCSIBR
    6. It's All About Compliance
    7. Effective Budgeting
    8. Savings Leakage Points
    9. Key Steps to Stem the Leakage
  14. 10 TECHNOLOGY: Investing in and Adopting the Right Tools
    1. A Procurement Revolution That Hasn't Happened
    2. The Steam Powered Tesla
    3. Technology's Promise to Procurement
    4. Investing in Technology—the Fundamentals
    5. Technological Disruption Is Coming!
  15. 11 CONSULTANTS: Using Consultants in Procurement
    1. Why Use Consultants?
    2. How to Select the Right Consulting Partner
    3. How Should I Best Use the Consultants?
    4. How Do I Make Sure That I Get the Best Value from My Consultants?
    5. It's All About the People
    6. Weaning Yourself Off the Drug
    7. What Do We Do When It All Goes Horribly Wrong…or How to Avoid That Happening
  16. 12 PRIVATE EQUITY: Learning Lessons from PE
    1. Private Equity and Procurement
    2. Changing Attitudes
    3. So Why Are Procurement and PE Such a Good Match?
    4. What Can Non-PE Learn from PE?
  17. 13 ROADMAP: Making a Concrete and Realistic Plan
    1. Transforming by Doing
    2. Putting the Plan Together
    3. Start by Talking to People…or Even Listening to People!
    4. Putting It All Together
    5. Getting It Bought Off
    6. Concluding Thoughts
  18. 14 CONCLUSION: Summary and Final Thoughts
    1. Procurement Is Not Rocket Science, but It's Difficult to Do It Right
    2. Breaking Down Silos
  19. Acknowledgments
  20. About the Authors
  21. List of Acronyms
  22. Index
  23. End User License Agreement