As supply management organizations strive to extend their influence throughout the company and impact the bottom line with ever fewer resources, some are turning to managed service providers (MSPs) to make the best use of their organizations' time and talents. MSPs, sometimes called consolidators, can be used for certain spend categories, such as energy or telecommunications, that traditionally have been difficult for mid-sized procurement organizations to manage effectively.

According to a recent survey of more than 200 global finance executives, the use of business networks and the technologies underlying them is helping to transform procurement from a tactical function to a strategic contributor to company success. "Procurement has traditionally been recognized and rewarded solely on the basis of its cost-cutting ability," said Sam Knox, senior vice president and director of research at CFO Publishing. "But through the productive use of automated systems, the function has been able to move beyond simply meeting savings targets to help address larger, more-complex issues such as managing cash and capital, managing risks to business performance, and expanding into new markets or business lines."