Spend Matters Report Analyzes Services Spend Beyond Contingent Spending

Study Finds Companies Can Save 10-40% in Non-Contingent Services Procurement Categories


CHICAGO, IL--(Marketwire - May 17, 2010) -  Spend Matters, the leading procurement and supply chain information and research hub, today announced the publication of a new report titled, "Achieving and Implementing Savings Across Previously Unmanaged Categories."

This research study explains how companies are increasingly pursuing cost reduction efforts across complicated services categories (e.g., legal, marketing, consulting) in addition to contingent labor.

According to the research, the opportunity presented by non-contingent services procurement looms large in the vast majority of Global 2000 procurement organizations. Yet companies have not invested sufficiently in building out their infrastructure to create a sustainable approach to savings and supplier management.

Jason Busch, Principal Analyst and lead author of the study, notes that "many companies we have spoken with are leaving millions -- in some cases tens of millions -- of dollars on the line every year in single services categories such as marketing, legal, accounting, consulting and other services areas." Busch suggests that "advanced procurement organizations are beginning to realize they can source even 'holy' categories such as management consulting, pitting McKinsey, Bain, BCG and other providers against each other to reduce costs by focusing on both negotiation and overall program management."

The research study provides important advice on buying unique category-management strategies and process design around lifecycle management and implemented savings programs. It also suggests various services-procurement technology platforms that extend beyond traditional indirect and contingent categories, allowing for greater flexibility as well as highly tailored category configuration in regards to process controls and capabilities.

This latest Spend Matters report is part of a new Spend Matters Compass research series dedicated to examining a range of services procurement topics. Other topics in this free series include:

  • Selecting Services Procurement Technology - Options, Approaches and Philosophy
  • The Managed Services Connection - The Evolving Roll of MSPs in the Contingent Spending Ecosystem
  • Making Procurement a Services Spend Ally - Tips and Tactics for Winning over Business Stakeholders and Spend Owners

Readers can download this free report and other complimentary studies directly from the Spend Matters website: http://www.spendmatters.com/library.

About Spend Matters
Spend Matters is a procurement and supply chain information research hub dedicated to examining a range of procurement and supply management issues. Founded in 2004, Spend Matters is the longest running and highest trafficked media site in the sourcing and supply chain arena.

Contact Information:

Contact:

Jason Busch
773 525 7406
Email Contact