Transforming the Procurement Department from Cost Center to Profit Center

Author(s):

Timothy R. Campbell
Timothy R. Campbell, Procurement Director, Philip Morris USA, 804-274-2983; Timothy.R.Campbell@pmusa.com
Ronald E. Butler
Ronald E. Butler, Staff Specialist, Philip Morris USA, 804-274-5301; Ronald.E.Butler@pmusa.com

89th Annual International Conference Proceedings - 2004 - Philadelphia, PA

Abstract

In many organizations, Procurement and Accounts Payables functions are viewed as cost centers – and thus an expense for the organization. In today’s environment the importance of being viewed by senior management as a value-added organization (i.e. profit center) versus a cost center may be the single most important change that is achievable.