Worldclass Purchasing

Central results from the "Purchasing Performance Excellence" (PPE) study

The global financial and economic crisis appears to have pulled out of its low point. An economic turnaround is expected in 2010. Now is when the decision is made as to who will capitalize on the opportunities of the coming recovery phase and who can lay the foundation for the years of future success. This can only happen with a methodical, optimally structured and staffed purchasing department functioning as the backbone of a successful company. By lowering costs, the purchasing department significantly contributes to increased value. However, this is not the case for all companies. Oftentimes, the purchasing department operates purely as an order processor and in doing so inadequately performs its strategic functions. What these types of purchasing departments can learn from the very successful purchasing organizations, including which best practices they can purposefully adopt and how they can benefit from the implementation and regular utilization of these best practices, was identified in detail by Arthur D. Little in cooperation with the University of St. Gallen and the German Federal Association of Materials Management, Purchasing and Logistics (BME) with the 2009 PPE Study.

Released: January 2010

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