…companies of all sizes now have access to the talent, market intelligence and technology needed to make procurement a competitive advantage. It’s a Procurement Revolution.

strategic procurement is:

The development and execution of strategies that enable a company to maximize the value and minimize the risks associated with their third party supplier spend.

Companies invest in strategic procurement to:

Save money to increase margins or reinvest in growth.

Increase the value of their supplier relationships.

Build supplier innovations into their end products.

Ensure an uninterrupted supply of products or services.

the compound effect:

Companies that have broad access to subject matter expertise and market intelligence achieve significantly higher returns than those that do not:

Before Investment

After Investment

  • Spend Under Management
  • Value Contribution Rate
  • Contract Compliance Rate
  • Retained Value
  • 50%
  • 5%
  • 60%
  • 1.5%
  • Spend Under Management
  • Value Contribution Rate
  • Contract Compliance Rate
  • Retained Value
  • 85%
  • 10%
  • 90%
  • 7.65%

(numbers for illustrative purposes only)

Why is there such a difference in returns?

Spend Under Management

Subject matter experts build stronger relationships with stakeholders, increasing spend that procurement can influence.

Cost Savings Rate

Experts understand supplier and market cost drivers, and have access to up-to-the-minute pricing intelligence.  Buyer/Seller negotiating dynamic changes.

Contract Compliance

Technology enables greater compliance tracking, and experts are more likely to negotiate contracts in line with company needs, reducing rogue spend.

But this was the problem:

Only the very biggest of companies had the scale to invest in strategic procurement across all areas of their third party spend.

Fortunately, that was then.

Here comes the procurement revolution!

Procurement-as-a-service is the wrapper that combines the next generation of outsourcing and temporary labor delivery models.

Imagine…

>Having access to hyper-niche talent that brings experience and intelligence directly related your specific challenge.

>That this talent was available to you on an as-needed basis, and you could pay on use.

>That the cost was only a fraction of hiring the talent on a permanent or long term contract basis.

>That performance measurement mechanisms provided risk protection in case you did not achieve the anticipated results.

procurement-as-a-service makes this a reality

It can be transformational…

Lever the depth and breadth of strategic procurement for the first time, gaining expertise in areas that do not have the scale to justify full time hires.

…or fill specific needs.

Targeted solutions enable companies to fill knowledge and resource gaps on-demand, and drive value from previously untouched areas of spend. All with the flexibility to scale as needed.

We help clients decide if the Procurement Revolution can make a difference to their business.

Learn more about us

ProcureChange is by your side throughout your procurement outsourcing journey:

 

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The Procurement Revolution

The “Procurement Revolution” was adapted from the following blog post:

Procurement-as-a-Service: New Jargon for an Old Model, or a Game Changer?

Additional Reading

Procurement Makes its Move to as-a-Service…; Charles Sutherland, Horses for Sources Blog.

Has the Procurement-as-a-Service Era Dawned?; Gerard Chick, Procurement Leaders Blog.

The Future of Work: The Economist Print Edition

To learn more, call ProcureChange at +1 888-380-1440