Sourcing starts with SpendInsight
shows that the public sector is only using the contracts that it has let about 30% of the time with 70% of spend off contract, so having a good p2p
process is as important as sourcing to realise the benefits from improved sourcing.
So whilst procurement has focused on sourcing as the source of savings these need to be policed through to invoice to be realised.
Sourcing cash benefits from £ 100 billion of SpendInsight
TOTAL (10% - 25%)
- (5%-15%) improved terms from suppliers for etrading
- (5%-10%) savings through improved negotiation on contract items
Strategic Sourcing Benefits
Government uses its sourcing to try an mould the economy. Through enforcement of Health and Safety, Environmental and Social Standards.
- Supplier Accreditation - can assist with Health and Safety compliance
- GreenInsight - provides for the first time environmental impacts down to item level
- Supplier Directores- provide lists of accredited suppliers and reduce the compliance burdon
Strategic sourcing will change an organisations supply chain and it is important to balance policy and savings to achieve the desired outcomes
s2p(Source to pay) Guaranteed Savings from SpendInsight
@UK PLC Guarantees that a Spend Analysis will show significant potential savings, and provide the immediate savings to fund a full s2p eprocurement project.