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Lean Procurement Processes Mean Fewer Employees

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Lean

Lean companies need only half as many employees in their purchasing department as non-lean companies.

By Becky Partida, knowledge specialist, supply chain management, APQC

With a renewed focus on "doing more with less," many organizations are looking at how the adoption of lean processes can increase efficiency and thus grow their bottom line. Lean programs within manufacturing companies are often focused on the production side of the business. This can offer substantial benefits for the organization, but the adoption of lean does not have to stop there. Lean programs within more administrative functions of an enterprise, such as procurement, can result in benefits as well.

APQC's Open Standards Benchmarking in procurement asks respondents to indicate whether their organizations have initiated lean process development in their procurement functions. To analyze how adopting these types of processes affects procurement performance, APQC looked at the number of full-time equivalent (FTE) employees needed to order materials and services per $1 billion in purchases for organizations that have adopted lean processes in procurement and for organizations that have not adopted these processes. The results provide insight into how lean processes can affect the efficiency of procurement functions. Read full article on IndustryWeek...

Last modified on Monday, 02 April 2012 12:24

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