Tag: SVM

2025 CPO Objectives: Facing Challenges, Achieving Business Goals, and Future Aspirations | Webinar

Live Webinar

2025 CPO Objectives: Facing Challenges, Achieving Business Goals, and Future Aspirations

November 12, 2024 |
8:00 a.m. PST | 10:00 a.m. CST | 11:00 a.m. EST | 4:00 p.m. GMT | 9:30 p.m. IST 

As global organizations face ongoing challenges like supply chain disruptions and price volatility, procurement functions are becoming more of an asset than ever. Chief Procurement Officers (CPOs) remain focused on cost savings, managing risk, and achieving high business user satisfaction while tackling challenges posed by inflation, regulatory requirements, and legacy systems.

Join our experts as they explore the top priorities of CPOs, the current state of procurement functions, and future aspirations. We’ll provide insights into how procurement leaders are addressing challenges and aligning strategies to drive stronger business outcomes.

This session offers procurement professionals the opportunity to compare their internal initiatives with industry trends and plan for future developments that align with the market.

What questions will the webinar answer?

  • What challenges does the procurement function currently face
  • Which outcomes are top priorities for the procurement function
  • What is the typical maturity of vendor/supplier management processes within organizations?

Who should attend?

  • Chief procurement Officers (CPO)
  • Procurement category managers
  • Global sourcing managers
  • Supplier relationship managers
  • Procurement managers
  • Supplier management leaders
  • Procurement outsourcing (PO) service providers / leaders
  • Tech providers
Fong Amy v1
Partner
Thunga Akash 1
Senior Analyst

Five Key Steps Buyers Should Take to Optimize Services Contracts | Blog

In today’s competitive business landscape, maximizing value in outsourced services is crucial for buyers to achieve savings objectives and maintain a competitive edge.

This blog delves into strategies to ensure cost efficiency and foster high-value vendor partnerships, providing a comprehensive focus on these approaches to vendor engagement, which in return can drive significant outcomes and enhance a firm’s overall performance.

Reach out to us to discuss this topic further with our expert analysts.

  • Role rationalization and skill-tier categorization: When sourcing teams lack a well-defined rate card structure, they struggle to compare vendor rates effectively, potentially leading to value leakage.

They should maintain a standard catalog of roles with clearly defined experience range and categorize key skills in tiers such as Standard, Premium and Niche skills, in which depend on existing technology landscape.

While comparing multiple vendor rate cards, this grouping will ensure clarity on pricing premiums and transparency in skill categorization. Notably, those who engage in role rationalization process with external benchmarking firms can potentially achieve overall cost savings up to 20-25%.

Picture1

In one deal scenarios, Vendor A charges $100/hour for .Net developers and $125/hour for full stack developers, with a 25% price premium on premium skills. This leads to overall cost savings for the enterprise buyer. On the other hand, Vendor B charges $110/hour for .Net developers and $120/hour for full stack developers, with only a 9% price premium, but resulting in a higher total cost.

  • Value leakage audits: Increasingly buyers are engaging third-party benchmark firms to conduct value leakage audits. These audits help determine if vendors are complying with contracts, invoices are billed correctly, service fees are competitive with respect to scope, and service credits are being applied properly by vendors.
  • Including a price benchmarking clause: Buyers often include a benchmarking clause in their Statements of Work (SoWs) with vendors. This clause specifies the terms and conditions for benchmarking service fees to ensure they remain competitive with market rates. It may be a recurring annual exercise where the enterprise engages an external firm to seek benchmarks during the contract tenure.
  • Tracking comprehensive metric scorecard: Traditional metrics include Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) related to savings, process improvements, and innovation. However, buyers are now including Experience Level Agreements (XLAs) and Objectives and Key Results (OKRs) in scorecards which offers a more holistic view of vendor performance by focusing on service quality, business alignment, and value realization.
  • Standardized measurement practices: Alongside implementing scorecards, buyers are establishing robust measurement practices to ensure accurate and fair vendor evaluations. These practices include defining clear data collection methods, implementing customizable metrics, and conducting regular audits. This flexible, iterative approach helps buyers identify value-creation opportunities, address performance gaps, and cultivate high-value vendor partnerships.

If you found this blog interesting, you can now register for our The Evolution Of Next-gen Customer Engagement Platforms | LinkedIn Live – Everest Group (everestgrp.com) event on September 26. 

To discuss this topic in more detail or for a detailed analysis, contact us at [email protected], or via Shatakshi Pandey ([email protected]), Geetesh Makkar ([email protected]), Amy Fong ([email protected]) and Prateek Gupta ([email protected])

Designing Agile Procurement Operating Models for Maximum Value and Innovation | Webinar

on-demand webinar

Designing Agile Procurement Operating Models for Maximum Value and Innovation

Procurement today faces constant pressure to reduce costs while adding value, such as improving efficiency, driving supplier innovation, managing risk, incorporating emerging technologies like generative AI, and helping the organization achieve its environmental, social, and governance (ESG) goals, among others. A well-designed procurement operating model is key to achieving these objectives, but many teams struggle with outdated models.

In this on-demand webinar, our sourcing experts helped procurement professionals understand the key factors of designing an effective model to ensure maximum organizational value.

What questions did the webinar answer?

  • Why are organizations transforming their procurement operating models, and what are the key drivers for this change?
  • How do you design a procurement operating model that aligns with your organization’s structure and strategic objectives?
  • What are the considerations for building agility in your procurement operating model so that it can easily adapt to changing needs?
  • How does an organization’s procurement maturity level impact its choice of procurement operating models?

Who should attend

  • Enterprises
  • Chief procurement officers (CPO)
  • Procurement category managers
  • Global sourcing managers
  • Supplier relationship managers
  • Procurement managers
  • Supplier management leaders
Fong Amy v1
Partner
Lad Amit 1
Senior Analyst
Singh Prateek
Practice Director

How can we engage?

Please let us know how we can help you on your journey.

Contact Us

"*" indicates required fields

Please review our Privacy Notice and check the box below to consent to the use of Personal Data that you provide.