The Procurement ROI Model CFOs Actually Believe (Idle Time, Expedites, Tax Leakage)

Summary

The episode breaks down why traditional procurement ROI models fall flat and introduces a CFO‑trusted framework that ties purchasing decisions to cash flow, risk, and operational speed. It highlights three hidden cost drivers—employee idle time from delayed hardware, costly expedites and customs holds, and shadow purchasing that creates duplicate assets and tax leakage—and shows how to quantify each with probability‑weighted or per‑day formulas. Automation and a disciplined procurement plan are presented as levers to reduce variance, improve compliance, and deliver measurable financial outcomes, supported by before‑and‑after dashboards.