IBM Study: Top Chief Procurement Officers Drive 22 Percent Higher
May 22, 2013
IBM Study: Top Chief Procurement Officers Drive 22 Percent Higher Profit Margins
In case you missed it over the summer, IBM presented evidence that you may want to use in making your business case for procurement optimization: companies with top performing procurement organizations report 15-20 percent higher profit margins.
—John Dreyer President and CEO
At the Smarter Commerce Global Summit, IBM (NYSE: IBM) today announced a study that says companies with high-performing procurement organizations are driving better bottom line results. According to the study, these organizations report profit margins of 7.12 percent as compared to just 5.83 percent for companies with low-performing procurement organizations. Also, companies with top performing procurement organizations report profit margins 15 percent higher than the average company – and 22 percent higher margins than companies with low performing procurement organizations.