We all seem to be so busy these days, what with digitization (including digital tax reporting); coping with the current economic situation; whilst managing constant changes in the internal and external business environments; I wonder if we are losing sight of the need to plan long-term. The uncertainty of Brexit would also appear to have taken its toll on the normal planning cycle, with sixty-two percent of businesses having not yet undertaken a Brexit Risk Assessment and seventy-five percent having failed to plan to manage the potential financial impact of Brexit on their activities (acco
Anyone with a little bit of experience in business has heard of the Pareto (or 80/20) “rule.” And this principle drives how organizations are targeting their efforts towards areas that would maximize results. With limited (finite) resources, it is logical to focus them on activities that have the highest impact/value.
Procurement is no stranger to this approach. Focusing on the 20% of the supply-base that makes 80% of an organization’s spend is a strategy and method that is very common, and that also makes sense from a pure “economical” standpoint.