The importance of relevance to the P and L Statement cannot be overstated. If you report procurement results that can’t be found on the Income Statement, your credibility will suffer greatly. In fact, as a CPO, I literally banned the word “savings” from our practice. Either a result was cost reduction, or it was cost avoidance. But never was it labeled by the vague term “savings.”
To have the best chance of credibility with your internal clients, you need to build a framework and tracking system that is P & L relevant – and that means tracking and reporting only cost reduction from operating costs.
This framework is one of the foundations for a credible approach to reporting the results from the efforts of your teams.
More in my next posting.
(Note: portions of this blog series are based on the author’s new book “Next Level Supply Management Excellence” – a sequel to the bestselling book “Straight to the Bottom Line® )
SC
MR
Latest Supply Chain News
- Bigger trucks versus broken bridges and roads
- From salon to dock door: Repurposing scheduling software for inbound flow
- The biggest barrier to AI in supply chains isn’t technology
- Rebuilding a planning function around the physical world
- Why companies blame the wrong supplier … and miss the real failure
- More News
Latest Podcast
Explore
Latest Supply Chain News
- Innovators Netstock, Pickle Robot win NextGen Solution Provider awards
- Bigger trucks versus broken bridges and roads
- From salon to dock door: Repurposing scheduling software for inbound flow
- The biggest barrier to AI in supply chains isn’t technology
- Rebuilding a planning function around the physical world
- Why companies blame the wrong supplier … and miss the real failure
- More latest news
Latest Resources
About the Author
Robert A Rudzki, SCMR Contributing Blogger
Robert A. Rudzki is a former Fortune 500 Senior Vice President & Chief Procurement Officer, who is now President of Greybeard Advisors LLC, a leading provider of advisory services for procurement transformation, strategic sourcing, and supply chain management. Bob is also the author of several leading business books including the supply management best-seller “Straight to the Bottom Line®”, its highly-endorsed sequel “Next Level Supply Management Excellence,” and the leadership book “Beat the Odds: Avoid Corporate Death & Build a Resilient Enterprise.” You can reach him through his firm’s website: www.greybeardadvisors.com
Follow SCMR on social media.
@SupplyChainManagementReview on Facebook
@SCMR on Twitter
SCMR on Linkedin
Subscribe
Supply Chain Management Review delivers the best industry content.
Editors’ Picks
