Procurement Benchmarking

Significant procurement transformation is hard. If you are like most procurement leaders, you’ve already started a strategic sourcing effort to get quick savings, but you’re finding it hard to figure out what to do next. Do I improve my IT systems to gain efficiency and reduce errors? What if I focus on cleaning up my master data to better understand and control my spend? Should I modify my processes to align them with those I know to be highly effective? Do I focus on changing my organization and improving my staff capability? By now, you’ve probably concluded that you will need to do all of this and more, but you’re struggling to prioritize your efforts.

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Capability Assessments

We have proven process maturity model based methods and benchmarking techniques to help you understand where you are compared to your peers and the performance leaders. We’ll work with you to create a transformation plan based on this assessment with a target to implement known, highly effective, procurement practices while meeting your total cost of ownership targets. We’ll also help you execute this plan, ensuring that you deliver both near term quick hits and longer term differential improvement.

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Procurement Transformation Value

A procurement transformation effort can reduce your costs significantly. For a typical implementation, you will see annual cost savings of 4 to 9% on your services and indirect materials spend. You will also capture fixed cost savings of 20 to 30%. With normal program execution costs equal to 1 to 2% of one year of spend, depending on your organizations size and current capabilities, most procurement organizations will break even during the third year of program execution.

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ISM-Houston PMI Rises to 57.2 in July

ISM-Houston announced this morning that the Houston Purchasing Managers Index rose a modest 0.5 points to 57.2 during July. Significant continued strengthen of the sales/new orders and lead times indices, aided by a rise in the employment index, drove this improvement. The finished goods inventory index, an inverse indicator of economic strength, fell further below neutral also indicated economic strengthening.

Click here to see the online version and here to see the PDF version of the full report.

ISM-Houston PMI Rises to 56.7 in June

ISM-Houston announced this morning that the Houston Purchasing Managers Index rose 2.5 points to 56.7 during June. Significant strengthening of the sales/new orders and lead times indices drove this improvement. A lower finished goods inventory index, an inverse indicator of economic strength, also indicated economic strengthening by falling further below neutral.

Click here to see the online version and here to see the PDF version of the full report.

Houston PMI at 54.2

ISM-Houston announced today that according to Houston area supply chain executives, overall economic activity in Houston continued to expand in May. The overall ISM-Houston PMI diffusion index fell modestly. Manufacturing activities have now expanded for two quarters and services activities have expanded for more than three.