I just found this posting online saying that a study reveals that world class Procurement organizations pay 41% higher.
My first reaction was of course they do. They therefore attract and retain the best employees which result in making them “world class” and resulting in the other benefits (higher savings, lower costs, etc.) mentioned in the post.
I bet all Procurement professionals had that same reaction.
Now, think about this: If we expect that our employers get the best from us by paying the most, why is it that we expect to find the vendors who will provide the best service, but do it at a price less than their competition?
As a procurement professional, that comment is a little too inciteful for my liking! ;)
To respond seriously though... like all purchasing decisions, it comes down to a cost/benefit analysis. If a particular procurement staff member, or a particular vendor can deliver higher value than their competition, then they can command a higher price.
Posted by: Doug Hudgeon | February 25, 2006 10:59 PM | Permalink to Comment