Procurement organizations understand the need to become more strategic, but making it happen is not as simple as flipping a switch. Often, procurement organizations don’t know what strategic looks like; they don’t know what strategic does. Although an increasing number of companies are considering the option of outsourcing tactical work, the internal transition to strategic remains a struggle.
Opportunity assessments have long been tied to service agreements or consulting engagements. They are expensive to conduct, have a limited shelf life, and are often cloaked in mystery. Once the effort required to collect and analyze data has been completed, consultants may use the opportunity to sell additional services, making the case that they should stay involved in order to meet the category requirements or timeline associated with the sourcing waves.
Buyers Meeting Point is pleased to share this guest contribution from Jamie Burkart, a project manager at Source One Management Services. If you would like to learn more about Source One, visit their website, view their YouTube channel, or follow them on Twitter @GetSavings.
Back in the first quarter of 2013, companies were beginning to ramp up their planning efforts for the implementation of the new healthcare law, formally known as the Affordable Care Act, commonly known as Obamacare. Businesses both large and small needed to prepare for new regulations, tax implications and the added expense of complying with the new law. In the 2013 ‘Prognosticators Series’ on Procurement Insights, Source One made the following prediction:
"Very large chunks of the healthcare reform package known as Obamacare are set to come online in 1st Quarter 2014, meaning plenty of corporations will spend the better part of 2013 conducting benefits analyses, planning, plotting, and, in some cases, gnashing teeth and stomping their feet. With the multitude of changes coming, there is ample room for bad decisions to be made on confusing advice, particularly from companies expecting good results by assigning a couple of HR folks and an accounting department rep to sourcing one of the most expensive and critical spend categories. Expect those companies that source their benefits intelligently and efficiently – or through a firm that is seasoned in the area and can make those decisions for them – to make the news for all the right reasons. Expect those who fight it tooth and nail, then rush to a rash decision, to be there for all the wrong ones."