Organized Money Actually Bob, Corporate America is MORE Wasteful than the US Government
Mar 6, 2025
Rich Ham, CEO of FineTune and procurement expert, joins the discussion to unpack the labyrinth of corporate efficiency and waste. He reveals how companies often squander money through poor purchasing practices, questioning whether drastic budget cuts, like those employed by Elon Musk, genuinely foster savings or lead to costly setbacks. The conversation draws parallels to 'Office Space', shedding light on the struggles faced by procurement teams and the tactics suppliers use to exploit inefficiencies, ultimately emphasizing the need for better strategic decision-making.
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Supplier Advantage
- Corporate buyers are overwhelmed, managing increasingly complex spending with fewer resources.
- Suppliers exploit this, employing tactics to increase margins at companies' expense.
Risks of Rash Cuts
- Eliminating programs outright in corporate settings can carry hidden costs.
- Risk assessment is crucial, as rash decisions can have unintended consequences.
Procurement Dysfunction
- Procurement departments, originally focused on cost reduction, have become less effective due to staff and resource cuts.
- The inability to negotiate effectively with vendors has led to increased costs.