A key driver of procurement is to increase spend under management (they control a higher percentage of the company’s procurement dollars spent) and to buy from fewer suppliers (to increase leverage and to reduce transaction costs). When I am at a Strategic Account Management Association (SAMA.org) conference, and I ask senior global strategic account managers, ‘Where do you see your company on this matrix?’, in general I get the following feedback.
Comments such as, ‘We are not the small, unimportant nuisance offering, where transaction costs are the most important ...
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