This final installment of our Spend Matters PRO series – “Procurement Services Market Landscape Report and Directory” – will summarize the results of our research, which sheds light on an important area that had not been explored much. To date, the study has included:
The study began with the premise of procurement as a services business, and more specifically, a high-impact professional services firm offering both transformational and operational services in spend/procurement management. The business need to manage external value chains and partners has never become more critical – especially given all the changes in the business environment related to Covid, inflation (which is also affecting sourcing and supplier financing), global supply chain issues, innovation, digital disruption, geopolitical risks, talent shortages and increased competitive intensity all of which lead to a need for more business agility and resilience.
Unfortunately, even in this environment where supply must be a strategic business partner to help the company navigate these choppy waters, too many crew members are busy drawing water and plugging holes in a ship. who struggles to stay afloat and hold her head up high. the water. According to CAPS Research according to its 2018 reference database, 65% of purchasing resources are operational (non-strategic). Let’s face it, supply needs help with their services business because their current services portfolio is clearly too tactical and the digital ship the crew operates is too squeaky, and former crew members are retiring and the best new crew members leave the ship.
Fortunately, the “captain” (CPO) has plenty of choice in a provisioning services market that is actually bigger than the S2P technology market! The Services Market is no longer about consultants doing the latest projects of the day or BPO vendors replacing your team (and maybe you too) with lower-cost team members to draw water more efficiently from a model. lift-and-shift.
By diving into the water and diving deep into the vast ocean of provisioning service providers, we discovered a rich ecosystem of emerging service models and capabilities that are described in the research. In fact, the guiding principle “Don’t make assumptions about what a supply market can do for you (or you will invariably destroy value)” is definitely in effect here. CPOs are in the driving seat to build a service ecosystem that is a virtual/augmented extension of any business function (including procurement) and business unit process that touches third parties and is significantly impacted by inbound value streams .
But the ecosystem also has its dangers.
For example, a large consulting firm may recommend a new ship (S2P suite) which may not be an optimal choice even though it works very well for that consulting firm’s S2P practice and not necessarily for the client. This is not a criticism of consulting firms, as they cannot be experts with all technology vendors. This is why many procurement managers turn to us for our TechMatch selection consultant, but also why some of the leading BPO consultancies/vendors have integrated TechMatch into the back-end of their supply capability diagnostics so that their customers can instantly get S2P technology vendor insights based on over 100 digital capabilities that are based on over 500 functional/technical requirements that we use to bench test nearly 80 of the industry’s leading technology vendors. If you are a procurement professional and would like to know if your current/potential service provider has this pre-integration (or general access to our intellectual property), please contact us.
In this final installment of our research series, we’ll summarize the results of our in-depth market analysis, propose an “everything-as-a-service” procurement service delivery model (and an integrated “transformation-as-a-service” approach). ” of the market), share the ideas of the participants in the study and propose recommendations of practitioners.
Let’s dive. And I promise: no more nautical metaphors…