Services Procurement: it’s about value, not just price
Procurement serves an essential function within every organization, ensuring the business has the resources it needs to get work done. Companies that excel in procurement can cut costs by negotiating better deals with suppliers, boost quality by choosing to work with the best suppliers, build ethical supply chains, and more. In fact, 65% of the value of a company’s products or services is derived from its suppliers, according to CAPS Research for the Institute for Supply Management.
The Future of Procurement report was published by The Times (a top UK newspaper) and Raconteur (a highly regarded UK publisher) in June 2019. It features an article about Services Procurement Insights 2019: The Big Reveal, a SAP Fieldglass research study conducted in collaboration with Oxford Economics. The article discusses key findings from the research, and their implications for how companies engage and manage services providers such as IT consultancies, marketing agencies and facilities management companies. Critically, it highlights how actively managing services providers can deliver greater business value and higher return on investment, while reducing risk.
The report also explores other key areas, such as the changing role of the Procurement function and the Chief Procurement Officer, how to harness Procurement to gain competitive advantage, the potential of AI to revolutionize procurement, the value of supplier-enabled innovation, and how to procure goods and services ethically.