Spend Right News
September 2016

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Different Perspectives, Common Goals

Over the past year, we’ve had the pleasure of talking with people from companies around the world. Large companies and small, in a variety of industries. For profit and not, public and private. It’s been wonderful getting to know so many new people and catching up with old friends.
Through these conversations, some patterns emerged. Not surprisingly, nearly everyone we speak with expresses a desire to increase profits. Taking the conversation a step further, the factor that seems to determine perceptions about procurement and what we do at Spend Right more than any other is whether a company has a procurement department.
Folks at companies without procurement departments often ask why they should worry about procurement at all. Some view it as an overhead expense. Others don’t believe their companies are big enough to need a department. There are often questions about the potential for savings and whether it would be worth the effort (spoiler alert - the answer is yes).
For these companies, Spend Right can conduct a spend analysis to get started. Spend analysis is an extremely cost-effective way identify opportunities to increase profits and reduce risk. Our subscription service plans offer another great way to begin reaping the benefits of managed procurement at a fraction of the cost of adding a full time employee. Our subscriptions are customized to fit your needs - click here to see sample plans:
The other end of the spectrum – those at companies with existing procurement departments - ask very different questions. Most center around “If we already have a great team why do we need you?” The simple answer is that most procurement departments are already working at capacity on day to day objectives. Throw in a big project – a new building, a procurement system implementation, or other large initiative – and the strain on resources can become a challenge. In these situations, we can provide experienced resources to support your existing team to ensure that those projects are completed on time without letting the day to day fall behind.
CAPS has conducted exceptional supply chain research since 1986 via the Institute for Supply Management and Arizona State University. They have determined that companies can estimate their addressable spend – that which can be affected through spend management – as a percentage of gross sales. That percentage factor varies by industry, but for most of our clients it’s about 20%. CAPS then goes on to say that in a company with a mature procurement function, annual savings potential via supply management should be about 5.25%. For a company with $100M in gross sales, that comes to just over $1M in savings per year. For a $1B company, you’re looking at $10.5M each year – which directly hits bottom line profits. Well worth the effort!
Regardless of your company structure or current challenges, we can help you work towards your savings potential and achieve your goals. Visit our website at for more information on all of the services we provide and to set up a free consultation.

Jennifer Albright, CPSM, C.P.M.
Joseph Albright, CPSM, C.P.M.
With nearly 40 years of combined experience in Procurement and Supply Chain Management, we have the tools to bring value and integrate best practices throughout your organization.

From cost savings to systems to supplier relationships, project management and  managing change, we are here to help our clients meet their corporate objectives and increase profitability.

It's not always about spending less.
It's about spending right.
Copyright © 2016 Spend Right, Inc., All rights reserved.

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