PSM Comes into its own when Linked with Key Strategic Challenges

PSM Comes into its own when Linked with Key Strategic Challenges 

Realized savings potential of procurement as percentage of total spend 

Percent of procurement savings over-/ under-delivered against Initial target 

Depending on merger size, accounts for 30 -60% of total savings 

Herein lies the key to why excellence in procurement is such an important indicator of a healthy merger. In order to achieve significant savings from product changes or optimized processes, in-depth cross-company and cross-functional involvement is necessary. The two old cultures thus start working together on creating new value and indirectly also a new culture. 

---