Procurecon Indirect West 2017

September 18 - 20, 2017

JW Marriott Camelback Inn Resort & Spa, Scottsdale, AZ


Gauging Indirect Spend Management, GPO Adoption, & Best Practices

Gauging Indirect Spend Management, GPO Adoption, & Best PracticesGauging Indirect Spend Management, GPO Adoption, & Best Practices

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Key topics include:
  • The structure of the procurement department and prominent challenges
  • Contract management and the allocation of time to indirect spending
  • Using GPO to meet the ever present need for savings


Key Findings:

  • The majority of respondents have adopted centralized procurement models, allowing spending to be consolidated across the business, but are still challenged with controlling maverick spending. Evidence of a trend that has been progressing over years, the average procurement department has now fully adopted a centralized structure in recognition of the fact that consolidating spend management across a business can yield more favorable contract terms, though the majority are challenged by buying behavior that is non-compliant with their protocols. For the same reasons, many procurement departments have begun to investigate, or have already partnered with Group Purchasing Organizations, which allows them to gain discounts and visibility into spending that might otherwise be out of the reach of their organizations.
  • Procurement is working on growing the strategic nature of its role within the business, yet the majority feel that the analytics capabilities that they currently have are not up to par. Though they are a key component of growing the role of a procurement department, the majority of respondents report that their analytics and benchmarking capabilities are still not where they feel they need them to be. In addition, only 15% of respondents will benchmark their data against the performance of their peers in the industry, relying on their internal peers.
  • Contract negotiation tends to be one of the more time consuming aspects of the procurement process. However, the majority of respondents feel it should not take up more than half of the department’s time. Contract negotiation and management can be an involved and time consuming process. As procurement adopts a more strategic role within the business, contract management must be balanced with other priorities or delegated. While it’s not likely that procurement will no longer be involved in contract management any time soon, ensuring that at least 50% of their time is available for other pursuits is recognized as important by a majority of respondents.

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