According to a 2016 report from Hackett Group, almost 29 percent of indirect spend is off-contract or rogue spend. The result? Rogue spend.Īlso known as dark purchasing, invisible spend, tail spend, unmanaged spend or maverick spend, rogue spend is any purchase made outside of the procurement process. Unfortunately, uncertainty or skepticism about procurement’s role often makes winning buy in from the business a challenge. To be effective, procurement managers must collaborate with every department. Company values including diversity and sustainabilityģ challenges facing procurement professionals Rogue spend and a lack of business engagement. ![]() Likewise, the number of factors they consider when selecting a vendor has also grown. They are becoming more empowered to analyze business operations, identify potential problems and recommend solutions.”Īccordingly, the job duties of a procurement manager have expanded. New technology enables them to take on more complex and strategic roles in many organizations. “In-house procurement managers are becoming more specialized, as well. In fact, an article from the University of Michigan comments on this trend saying: In light of their ability to reduce costs, improve outcomes and identify strategic partnerships, it should come as no surprise. However, an increasing number of companies now recognize the insight and value procurement managers hold. Traditionally, the role focused simply obtaining goods to meet internal needs. In the last few years, the role of the procurement department has been changing and expanding. This evaluation determines vendor effectiveness, compliance and ultimately, the business’s return on investment (ROI).Įxplore how to calculate RFP software ROI in this ebook: Measuring the value of RFP software Additionally, procurement manager responsibilities include reviewing past purchases made by the company. Generally, that means finding supplier partners that strike a balance between quality and cost. ![]() KKR & BDC accounts’ participation, KKR Capital Markets’ involvement, and deal teams leading the negotiations/structuring are all considered when determining the Origination Role.Procurement manager role and responsibilitiesĪ procurement manager is responsible for ensuring that their business purchases the goods and services that will best help them achieve their goals. Figure based on fair value of Direct Origination investments only. ![]() On a GAAP basis, FSK’s weighted average annual yield on accruing debt investments was 9.9% as of June 30, 2022. See FSK’s Quarterly Report on Form 10-Q for additional information on the calculation of weighted average annual yield on accruing debt investments.
0 Comments
Leave a Reply. |