A 5% boost in procurement can be worth as much as 50% extra sales
The figure is not her own. It comes from the US-based Institute of Supply Management, which also states that reducing costs by 5% up front has the same impact on the bottom line as a 50% increase in sales.
“If you focus on doing the right things, then this is a fairly typical return on your investment,” said Ms De Doncker. “However, many of us can be poor at selling that message, at getting people to see how a Lean mind-set can be a real multiplier on your business performance.”
