A Practical Approach to Services Procurement - nextSource

Navigating a Practical Approach to Services Procurement 

In today’s complex business environment, managing a services procurement process efficiently is more critical than ever. Organizations frequently grapple with the question of whether to handle everything in-house or to supplement with a partner that can augment their existing capabilities. 

Why Consider a Service Provider for Your Procurement Needs? 

A professional services firm that specializes in managing project services teams doesn’t just fill gaps; it enhances the strategic execution of projects by offering expertise in the use of third-party resources. It will enhance your existing Procure-to-Pay (P2P) or Source-to-Pay (S2P) processes conducted by your Procurement team by providing detailed insights into provider performance and compliance while also offering assistance in onboarding, tracking and paying these providers. The goal? To optimize operations, reduce costs, and improve service delivery across the board. 

What Does This Mean for Your Business? 

In many organizations, individual departments source the needed service providers, then turn to Procurement to establish the contractual relationship.  This approach may deliver a project services team with needed skills or an established relationship with the organization, but much can go wrong.  Is the organization paying market-based rates?  Would the work be done equally well by a contractor sourced through a staffing agency at a lower price point?  Are all members of the project services team properly screened and onboarded?  When invoices are submitted by the provider, are they checked against the established budget and contract?  How is scope creep handled?  

Most organizations are unaware of the impact this may have on their bottom line, but the numbers are too big to ignore.  Numerous studies show that: 

• $1.1 trillion annual U.S. spend on Statement of Work (SOW)-based external services 
• Spend on project services is typically six times spend on staffing agency supplied contractors. 
• 25% of project services spend is not tracked or controlled by Procurement teams. 
• One-third of small project resources can be provided via a staffing agency at an average savings of 20%.   

By attending our upcoming webinar on Statement of Work “SOW: Client Needs, Strategic Choices, and the User Experience,” co-hosted with Chateau Consulting, you will explore how to: 

• Enhance your procurement strategies with the aid of a service provider. 
• Navigate the administration of service providers with greater efficiency. 
• Gain detailed insights into the usage and performance of suppliers. 
• Define clear responsibilities and processes across your procurement ecosystem. 
• Forge an action plan to create greater awareness and value. 

Who is This for? 

This webinar is an essential session for procurement managers and decision-makers aiming to streamline their service procurement strategies and achieve better outcomes through a structured, informed approach. 

When is This Happening? 

Join us for our webinar on May 22 at 1 pm ET to transform your approach to services procurement with guidance from seasoned experts.  

Don’t miss out on learning how this strategic partnership can bring about transformative results for your business.