Jason Busch Selecting the best technology set for any procurement or operations organization is never easy. Vendors bombard companies—and those that influence company buying decisions, such as analysts and consultants—with functional detail after functional detail, often attempting to differentiate at such a level that even the experts who review such products often throw their hands up in despair. In the case of services procurement, this could not be more true, owing to both the diversity of the provider ecosystem and the range of philosophies and approaches brought to the table by different providers.
Jason Busch In recent years, many procurement organizations have begun to examine the opportunity to consolidate their contingent—and even statement of work (SOW)—buying activities under a single buying umbrella. But in today’s environment, services procurement in non-contingent categories can have potentially an even greater impact from both cost and non-cost perspectives. Spend Matters research suggests that in categories such as marketing and print it is often possible to achieve 10%-20% total savings without changing vendors.
Jason Busch Spend Matters analysis suggests that procurement organizations that market themselves effectively drive greater identified and implemented savings across both simple and complex services categories. More important than getting initial savings to stick, companies that successfully market procurement will succeed in creating a virtuous cycle that sparks enthusiasm for new and existing programs. When it comes to both contingent and non-contingent spending categories, procurement organizations are always most effective at winning over business stakeholders when they change their orientation from one as function to one as service provider.