More Procurement Myths Debunked on Chief Procurement Officer Website

Pierre Mitchell, chief research officer, continued his special series of debunking procurement myths over on our Chief Procurement Officer website this week, hitting myths No. 16 and 17. Check them out below:

Procurement ROI Is The Single Best Procurement Metric: Procurement Myth No. 16

“No PO, No Pay” is a Best Practice – Procurement Myth No. 17

In Myth No. 16, Pierre tackles the belief that ROI is the best metric to use within procurement. "Don't get me wrong," Pierre writes. "Procurement ROI is in fact a good single composite metric ... However, it is only one metric, and doesn't speak to the broader 'balanced scorecard of supply' that is important to the budget/business stakeholders that procurement can help them improve." Pierre makes some other metric suggestions you will want to read up on.

And, in Myth No. 17, Pierre talks about why, in some instances, POs are not needed. Sure, an invoice without a PO is annoying, but as Pierre puts it, the problem with the supposed best practice of requiring a purchase order, "is that you won't find a single company out there that has 100% use of pre-invoice POs." Read the full article to find out more.

And, stay tuned to Chief Procurement Officer, as Pierre plans to hit on 25 (at least) procurement myths in the series.

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