Spend Matters US vs. Spend Matters UK: A Procurement Debate (Part 2)

Andrew Cox is the Vice President of the International Institute of Advanced Purchasing and Supply, and his rebuttal to Jason's motion is that, simply: "It Depends."

Like Jason, Andrew also begins with a joke:

Question: If you have five economists in a room, how many opinions do you have? Answer: at least seven.

Andrew jumps in by weighing the question, "what's the difference between 'should' and 'is'"? He says, "Here's the other side. Not because I necessarily want to, but because I have to."

Andrew's main point is that whether we like it or not, most CEOs still only measure CPOs on their ability to drive cost reduction, and you're a lucky individual if you have a company that measures beyond that KPI. In the majority of cases, he says, companies simply don't understand the notion of weighing overall value of money as part of the spending equation.

He ends with the fact that CPOs don't last very long in many organizations, precisely because many can't deliver the one thing they're measured on. "You can't go beyond cost reduction until you prove that you can reduce costs," he says. "It's a frustrating paradox."

- Sheena Moore

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