Excerpt: Procurement as Productivity

The following is an excerpt from the book Procurement 20/20: Supply Entrepreneurship in a Changing World by a quartet of McKinsey & Company consultants—Peter Spiller, Nicolas Reinecke, Drew Ungerman and Henrique Teixera.

| May 03, 2014


Procurement 20/20McKinsey Models Procurement in Data-Driven World

The following is an excerpt from the book Procurement 20/20: Supply Entrepreneurship in a Changing World by a quartet of McKinsey & Company consultants—Peter Spiller, Nicolas Reinecke, Drew Ungerman and Henrique Teixera. Peter Spiller is an Expert Principal in McKinsey's Frankfurt office and leader of the firm's European, Middle East, and Africa Purchasing and Supply Management practice. Nicolas Reinecke Reinecke is an Expert Principal in McKinsey's Hamburg office.

Drew Ungerman is a Director in McKinsey's Dallas office and a leader of the firm's Americas Purchasing and Supply Management practice. Henrique Teixeira is an Expert Principal in McKinsey's São Paulo office. The book chronicles the evolution of the procurement function in business today. Companies are discovering procurement as a productivity driver. Today, with external spend at 85 percent of the total cost base of the average Fortune 500 company, Chief Procurement Officers and their organizations are more important than ever. The following except is taken from Chapter 5—Big Data and the Global Grid: Procurement's New Role in Data-Driven Decision making.

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