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Vol. XIV Issue II - February 2012
Project Management eJournal
PM ADVISORY:
Make Procurement a Priority to Achieve Significant Cost Reductions in 2012
by William Gindlesperger, CEO
e-LYNXX Corporation
USA
A wise New Year’s resolution is to assess how more can be done with existing resources. This is certainly true as organizations continue to look for ways to squeeze every penny out of every dollar. One proven way of maximizing resources is to save on goods and services through the purchasing process.
Often relegated to back-office operations, procurement has earned its place at the strategic decision-making table of any organization that wants to improve its bottom line. According to the most recent survey of chief procurement officers by Capgemini , 79% of chief procurement officer respondents stated that procurement must be more focused on “improving an organization’s bottom line.” The Capgemini survey also found that more than 70% of purchasing functions now report directly to boards of directors and more than a quarter report directly to chief executive officers.
Given the growing importance of procurement, there are some basics that must not be overlooked to establish a cost-effective and efficient program:
Plan properly - Consult with departments within the organization to determine projected needs, timetables, quality and quantity requirements, budgets and frequency of orders. Inadequate planning will lead to problems. Centralize purchasing of similar items where possible.
Assign accountability - Establish roles and responsibilities so all know who is responsible for such key decisions as quantity, quality, design, deadlines, final approvals, etc. Get as many decision-makers as possible involved in the planning process so all bases are covered from legal to shipping.
Ensure transparency - Make sure all participants in the procurement process, internal and external, know that procurement ethics will be applied to ensure fairness and avoid favoritism or any relationship that may seem questionable.
Be legally compliant - Be meticulous with all contracts, orders and licensing agreements so ensure that are legally sound with every client before the procurement process is initiated.
More…
To read entire paper (click here)
 About the Author Author
William Gindlesperger is a nationally recognized entrepreneur, inventor, author and consultant. He founded ABC Advisors and its successor, e-LYNXX Corporation, in 1975. Profit, non-profit and government organizations alike have benefited from his insights and innovations that have resulted in measured and substantial cost reductions. Mr. Gindlesperger’s advice and counsel have yielded results for those with fiduciary responsibility and the authority to take action to reduce costs. He has directed major initiatives in both the private and public sectors. He has testified before the U. S. Senate Committee on Rules and Administration regarding government print and procurement policy. He has worked directly with numerous Congressional and Senatorial members and staff and has advised the U.S. Congress on the development, operations and future of government procurement. Mr. Gindlesperger was a founder and chairman of Printing Industries of America's (PIA) PrintPAC (political action committee) and has been recognized for his contributions to PIA and services to the printing industry. He was inducted into PIA's Ben Franklin Honor Society of print industry leaders in 2009 for his lifetime contributions to the print industry. Supply & Demand Chain Executive honored Mr. Gindlesperger by including him in its 2010 and 2011 listing of the most influential leaders in the supply and procurement profession in North America. Mr. Gindlesperger invented the Automated Vendor Selection (AVS) Technology® -- the technology that is integral to e-commerce and optimizes cost reduction in the procurement of all customized and specification-defined goods and services. He has been granted a series of Automated Vendor Selection patents, including Patent No. 6,397,197, Patent No. 7,451,106, and post-Bilski Patent No. 7,788,143 (collectively, the “AVS Technology® ”). A native of Chambersburg, Pa., Mr. Gindlesperger is a graduate of Dickinson College in Carlisle, Pennsylvania. Under Mr. Gindlesperger’s leadership, e-LYNXX has grown into the leading print management and procurement licensing firm in North America. e-LYNXX has been exclusively endorsed by Printing Industries of America (PIA) and has been named one of the top 100 procurement firms in North America by Supply & Demand Chain Executive magazine. His firm handles more than 200 on-going consulting assignments at any given time. Among its contracts is one with Educational & Institutional Cooperative Purchasing to assist colleges, universities and other institutions around the United States with procurement and spend management. William Gindlesperger can be contacted at william.gindlesperger@e-lynxx.com. Information about e-LYNXX can be found at www.e-LYNXX.com. |
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