According to The Hackett Group, "a decision not to use group purchasing organizations (GPOs) for specific indirect spend categories is the same as leaving money on the table." But, research by ProcureCon Indirect West found that 58% of organizations haven’t yet investigated or aren’t using a GPO.
There are many times in our professional careers when we need to convince others to go along with our course of action. It could be convincing our superiors to follow our strategy, compelling your employees to take on a new project or persuading a vendor to make changes. During my own professional career, I have been on both sides of this equation: I have been convincing and I have been convinced. During these experiences, one thing was constant—the need to carefully construct a meaningful business case. So, how do you get started? In this post, I will discuss the five components for making a strong case and a set of questions to help you get there.
As a procurement leader, you’re well aware of how procurement’s role is evolving within the organization. You’ve probably been involved in discussions with your team on how to adapt to changing expectations while overcoming these common procurement challenges.
For a procurement professional who’s perpetually overstretched, conducting a request for proposal (RFP) guarantees one thing, and it’s not better pricing. It’s time.
Dustin Cochran is the Director of Member Development for Corporate United and was recently named a 2017 Pro to Know by Supply & Demand Chain Executive for his extensive procurement expertise and work in helping organizations achieve best-in-class spend management programs.
2017 Pro to Know Katie Virtue has been a part of Corporate United’s category management group for over six years, focused on carrying out Category Lifecycle Management efforts across Corporate United’s Travel offerings.
Matt Narens is a Category Development Manager within the Facilities Vertical at Corporate United and was recently named a 2017 Pro to Know by Supply & Demand Chain Executive.
As a procurement leader you are often put in the position to guide your organization through change as you make new vendor selections and rollout new solutions. Naturally, you may face different levels of resistance from stakeholders along the way.
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?