PROFITABILITY CATEGORY #4

Taking Procurement Out of the Basement

The title of this section came from my work with hospital clients. When I visited my clients, many of whom were CFOs and senior procurement people, their offices were often in the basement of the hospital. I would need to go through unpainted corridors to find a small office with a few people packed into it. In one case, the procurement office was next to the morgue.

Is that the way to treat the people responsible for helping the organization purchase millions of dollars of goods and services? We need to take procurement out of the basement. We need to realize the value that procurement can offer to the organization. It is a support service, not a compliance function. It is run ...

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