PEM has helped clients achieve a 23% annual savings in purchasing volume within financial services and telecommunications sectors.
While purchasing spending is a significant share of total revenues, many companies do not fully embrace it as an important value lever. But when organizations carefully examine how they approach procurement, improving performance can often result in material cost reductions.
BCG’s Procurement Excellence Monitor (PEM) helps organizations assess their internal processes, policies, governance, tools, systems, and practices to identify areas for improvement. It also provides clients with analytical tools and reports, as well as peer benchmarks—everything you need to understand your procurement performance and how to improve it.
BCG’s PEM tool analyzes five core dimensions that drive excellence in procurement.
After this analysis is complete, PEM results can be used to develop a detailed assessment report showing how your current procurement performance compares to industry best practices as well as the rest of the company, industry peers, and a geographical average. It will also highlight where internal alignment regarding procurement’s performance exists, as well as gaps to close. The assessment report also recommends specific actions that can help achieve a higher level of sustainable excellence ranked by priority.
PEM has helped clients achieve a 23% annual savings in purchasing volume within financial services and telecommunications sectors.
PEM has helped clients achieve a 22% annual savings in purchasing volume within pharmaceuticals and health care sectors.
PEM has helped clients achieve a 20% annual savings in purchasing volume within retail, energy, and utilities sectors.