Organisations with mature procurement functions have processes in place to review contracts on an ongoing basis, which for the most part ensures that the products and or services are being delivered consistently and meet the agreed specification and/ or service levels. In addition, the most advanced of these organisations will ensure that regular market reviews / benchmarking are conducted either by automated or manual means.

Depending on the nature of the product/service the task of obtaining the relevant information to inform your view of the competitiveness of your contractual pricing will vary in complexity; it may be a simple case of obtaining comparative pricing which can be conducted by an internet search or it may be more complex and require a cost model to be developed in order to take multiple factors into consideration. 

The latter approach requires dedicated time / resources to ensure that an optimal outcome is achieved. Yet, many organisations and yes, even those with procurement functions, are “guilty” of attempting to carry out complex procurement activities as a  “bolt on” to the day job!

If the above resonates with you and your organisation, it is quite possible that you could be sat on untapped saving opportunities ranging between 15 – 30%.

The lack of time and/ or skilled resource may be the major contributing factor to the above situation and one that we at Marriage-Stanley & Associates can help you with. Contact us today on 07812192754 or email via the contact form here to book a free no obligation 30 minute consultation to discover how we can help you reduce the cost of your procured goods and services.