NAPM Insights

Let's Mentor the Nonpurchaser Members Only Content

CEOs'/Presidents' Perceptions and Expectations of the Purchasing Function (Fearon and Bales, 1993), a study conducted by the Center for Advanced Purchasing Studies (CAPS) in 1993, revealed that purchasing's role in its traditional purchasing capacity is smaller than commonly believed. The newest CAPS study, Purchasing of Nontraditional Goods and Services (Fearon and Bales, April 1995), further finds that a majority of the purchases in an organization are not procured by personnel who fully understand the logical purchasing process. In fact, on average, acquisitions not handled by the purchasing department make up about 59 percent of the total dollars spent, against purchasing's 41 percent. The new study also discloses that many organizations are not able to identify who spends the money and how much is spent.

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