Thoughts aloud: how to stimulate the global procurement industry to implement and unite procurement standards?
One potential way. Last week, I had checked the methodology of Credit rating analysis of the Big Three agencies about indirect procurement of things and discovered that there are actually a couple of things. The spending part usually involves evaluating from an accounting standards perspective and not from the reasonable or strategic side. In simple words, a company can have an «A+» credit rating with excellent reporting quality, but lack mature control over what they are buying. I saw some initiatives with Procurement standards last year. For example — COPC, but they are not active in the marketing industry and mostly focus on an educational area, rather than the «must-have» principle.
I see the headlines: Fitch has raised the rating of the company, because the company had implemented global procurement standard. And next, see how stock starts growing. It is another side of Value…
Creating Value through Procurement