Indirect spend is getting a lot of attention lately, as cost reduction is a key strategic priority for businesses worldwide. As we’ve shared before, not using a GPO for certain indirect spend categories is the same as leaving money on the table. But, exactly how much money are we talking about? And, perhaps the better question is: how can you avoid leaving that money on the table?
The following is an edited excerpt from the book Expensive Sentences: Debunking the Common Myths that Derail Decisions and Sabotage Success written by Jack Quarles. It is available on Amazon.
At the core, a traditional GPO provides value through three main elements: money, time and resources.
"A decision not to use GPOs for specific indirect spend categories is the same as leaving money on the table" was the headlining quote from a recent Procurement Executive Insight from The Hackett Group.
A recent study by The Hackett Group defines a group purchasing organization (GPO) as “an entity that is created to leverage the purchasing power of a group of businesses in order to obtain discounts from suppliers based on the collective buying power of its members.”
Group purchasing organizations (GPOs) come in many shapes and sizes. Before determining what kind of GPO would best fit your organization, you must first decide if a group purchasing organization is right for you.
To manage overhead costs associated with running the business, companies will often hire employees dedicated to ensuring that capital is spent efficiently. At its core, this is the role of a procurement department.
It’s hard to believe a year has passed since we wrote our “Welcome to 2015” post. Cliché but true! As predicted, it was an exciting year at Corporate United.
How could paying to watch your favorite show on Amazon affect how corporate procurement departments function?