Everyone—politicians, the press and the public alike—is fond of pointing to government bureaucracies as models of waste in action. It takes too long to get things done there, and often the results are less than spectacular. But what about business? Ah, business practices are models of efficiency, right?

Wrong. There is plenty of waste and inefficiency in the corporate world too, as anyone who has ever held a job in the private sector can attest. Unfortunately, some of that waste and inefficiency crops up in purchasing operations. Jim Morgan, editor emeritus of Purchasing, once identified some of those areas as inappropriate, bureaucracy-building transaction systems; unclear inventory policies; dysfunctional collaboration teams; and insufficient training.

No doubt, you can name a few other areas where there's waste, and I hope you'll e-mail some examples to me.

Bob Kane certainly can point out areas of waste, and he knows how to eliminate it. He is director of supply chain management at General Dynamics. You can bet he has seen plenty of inefficiencies in his long and distinguished career. One example: Back in the late 1970s, he worked for an electronics company making automated test equipment. "I used to buy one diode at a time," he recalls, adding that, obviously, the process didn't allow him to add much value.

Of course, that was in a time before technology had really taken hold in the field. Modern software makes situations like that just bad memories for most companies. Kane is a big believer in the value of using the latest technology to make systems more efficient. But, he cautions, technology alone won't get rid of waste. The wrong technology applied in the wrong way can actually add inefficiencies. "Technology tools are important, but they are the smallest part of the puzzle" for those looking to build efficient processes, says Kane, who uses tools from Ariba. "You have to design an approach (to technology) that meets your needs today and tomorrow."

Good advice. And it applies to every other aspect of your purchasing operations as well. Know where the waste can hide. Seek it out, aggressively. And devise a plan to get rid of it—before it gets rid of you.