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Higher wage rates key to strategic sourcing
Atlanta—World-class procurement departments have fewer clerical staff and more professionals, according to data from strategic advisory firm, The Hackett Group (Atlanta).
Its Book of Numbers research shows these companies have 63 per cent fewer clerical staff and 31 per cent more professionals than typical companies. Their wage rates are also higher—by 41 per cent.
The higher rates enable them to attract the skills required to operate purchasing as a strategic investment, rather than a cost centre. These organizations also spend 74 per cent more hours per year on training procurement staff, and devote far fewer hours to transactional activities.
“They take a wider view, understanding the implications of procurement policy for suppliers, internal and external customers, and shareholders. Their staffs lead cross-functional teams to establish which goods and services are most beneficial to the company, taking a broad array of factors into account, not just purchase price,” said Chris Sawchuk, procurement practice leader with The Hackett Group.
They also exhibit more skill with supplier management, sourcing, cost analysis and supplier metrics, according to the research.
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