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Procurement Performance Measurement

What CFOs expect from measuring Procurement Success

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Procurement excellence is increasingly becoming an important factor in delivering efficient operations within successful companies. On the surface, effectively measuring procurement performance is not rocket science. However looking deeper, adequate measurement of procurement success is a big issue, as bottom-up reported savings can significantly deviate from the key financial figures a CFO looks at. Arthur D. Little’s latest study on procurement performance identifies the key challenges that companies currently face in developing a CFO-friendly procurement performance measurement. This report suggests a best practice approach to overcoming these challenges and consistently measuring purchasing success in the future.

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