Measuring Supply Management's Budget Effects : Introduction of Return on Spend as an Indicator of Supply Management's Financial Effectiveness PDF
by Anna Quitt
Part of the Einkauf, Logistik und Supply Chain Management series
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Description
Performance Measurement is currently one of the most talked about topics in Purchasing and Supply Management (PSM) - in research as well as in business practice.
However, it is not simply a business fad; researchers already introduced the Balanced Scorecard, a performance measurement method, to PSM a few years ago.
A more novel idea in this context is measuring the budget impact of PSM - its financial effectiveness.
In business practice, only 10-20% of supply management's effectiveness can be identified retrospectively in the P&L account with current measurement methods.
Thus, PSM is often criticised for only being able to demonstrate its efforts on presentation charts, so-called "powerpoint savings".
Therefore, researchers were requested to support practitioners in finding a solid and feasible solution to the problem of savings measurement.
The derived solution measures PSM's financial effectiveness by integrating the function in the budgeting procedure, based on the following hypothesis: Only when supply management addresses its planned savings potential already in the budgets, it can show its comprehensive bottom line effect.
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- Format:PDF
- Publisher:Gabler Verlag
- Publication Date:24/09/2010
- Category:
- ISBN:9783834984906
Information
-
Download Now
- Format:PDF
- Publisher:Gabler Verlag
- Publication Date:24/09/2010
- Category:
- ISBN:9783834984906