Updated 6/14/2021 at 1:30pm ET
For manufacturers, change is expected and inevitable. As a result, procurement professionals are tasked with generating greater results and more efficiently managing costs. Based on our work with the top 7 out of the 25 manufacturers in the United States, we have observed the following five trends listed below that are impacting our clients’ ability to generate value.
Five Procurement Trends
Consolidation has reduced completion in many categories, putting upward pressure on costs.
The prevalence of high profile data security breaches, even at organizations with sophisticated controls, has illustrated increased data security risk in the supply chain. Ensuring supplier contracts adhere to security protocols, such the European Union General Data Protection Requirements, takes focus away from cost reduction initiatives.
A few enterprises have mandated procurement environments, and there is a greater focus than ever on optimizing stakeholder experience to increase utilization of procurement.
Business units are loyal to suppliers with consistent operational track records, even if costs are slightly above market.
Management scrutiny of claimed savings increases each year, as do expectations. Finding new sources of real cost savings is a perpetual challenge.
Our Contract Compliance Audit Services team helps increase third-party transparency, efficiency, and savings. Our manufacturing clients achieve a 3.9% recovery on spend on average, and receive valuable insights to strengthen third-party relationships, optimize ROI, and limit risk.
How can we help you generate greater value? For more information, contact Porter Whitman, Contract Compliance Audit Business Development Manager, or Patrick Gahagan, Director, here for more information.