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While this approach is appropriate for certain commodities utilizing an event-centric tool, extensive research including a CAPS 2003 study indicates that it does not create a sustainable COGs savings model. The examples provided by the Floor to Ceiling Analyses included with this report provides further confirmation of this assessment.
What is interesting to note is that low-dollar, high volume procurement is often overlooked by the majority of purchasing departments and software vendors, whose time and energy is usually focused on negotiating the big dollar contracts. This occurs despite the fact that statistical analyses of purchasing trends in both the public and private sectors consistently verify that approximately 90% of all transactional activity relates to purchases of $25K or less...
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