The Hackett Group has launched an open performance study designed to help companies more effectively control spending on ad hoc project-based purchases in IT in such areas as telecom, human resources, sales and marketing, finance and corporate services, and capital equipment and services.
While most companies are working hard to proactively and strategically source their large recurring vendor expenditures, dynamic project-based purchases often don't receive the same level of attention and rigor--if at all, according to Hackett Group officials. Unfortunately, these missed savings opportunities add up, and companies may be leaving significant savings and supplier value on the table.
This study is designed to help participants better understand the scope and severity of such spending. Using a performance-based and practices-based assessment methodology, the study aims to help firms "size the prize" and choose the best practices to better manage this unplanned demand.
According to Hackett's research, world-class procurement organizations generate 152 percent higher hard-cost reductions and 32 percent higher spend influence for non-production "indirect" expenditures. The world-class group's ability to manage spend more deeply and effectively gives them an even greater financial opportunity to close their influence gap - an opportunity that Hackett estimates easily exceeds $15m for a typical Global 1000 firm.
Source: The Hackett Group