Microsoft takes steps to world-class procurement: purchasing rises to meet cost-savings challenge issued by CEO Steve Ballmer. (CEO Report).

Purchasing, April, 2003 by Avery, Susan

Microsoft is closing in on exceeding a $1 billion cost-savings goal.

Issued by CEO Steve Ballmer nearly two years ago, the companywide challenge called for the savings to be achieved within 24 months. The software giant is on track: It has chalked up savings of more than $825 million in 20 months.

This achievement would not have been possible without the help of worldwide procurement led by Don Jones.

When Jones took the position of general manager, worldwide procurement, Microsoft Corp., Redmond, Wash., late in 2000, the group was focused mainly on improving efficiency of the company's transaction processes. With the help of IT, procurement developed a set of online tools for use by employees to buy indirect goods and services such...

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