Leaders of small and medium-sized businesses (SMBs)--owners, presidents, chief executives and chief financial officers--are probably the most sensitive to opportunities that impact the bottom line, or have the potential to help drive market share. The purchasing function probably doesn't seem to be the place to look for such opportunity.
Whereas large enterprises are embracing the notion of "strategic sourcing," smaller companies tend to see purchasing as a necessary--often overworked--administrative function.
In this whitepaper, we show how SMBs can apply the same concepts of strategic sourcing to drive significant cost savings. For example, for a manufacturing company with $20 million in sales and a 10% profit margin, a reduction in COGS from 70% to 65% of revenue would mean a 35% increase in profit.
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