Business Excelleration™: Fast-Tracking World-Class Performance - Procurement
The COVID-19 crisis has put the Procurement function and the businesses they support under great pressure with new business realities demanding a higher level of performance. Heading into next year, procurement executives are taking a longer view, with an eye on how to operationalize and sustain business agility.
- Based on our data, Hackett estimates companies that achieve digital World-Class General and Administrative (G&A) performance will realize a 31% cost advantage over their peers with 45% fewer full-time equivalents (FTEs).
- Scaled for a $10 billion company with G&A costs of $349 million, this represents a $149 million efficiency improvement opportunity that can be used to self-fund investments of $42M in new technology and development of new capabilities while in parallel bolstering the bottom line by $107M.
- More importantly, Digital World-Class organizations drive much higher effectiveness levels, achieving 2.5 times the market cap per employee on average over their industry peers.