Article
Communicating the value
Jonathan White of Spikes Cavell discusses how to demonstrate the value of efficiency in procurement
In the spring of 2013, NIGP’s strategic partner Spikes Cavell developed a Guide to Procurement Savings designed to show public sector procurement teams how they could use spend data to understand, change, and measure their procurement function. Previous issues of Government Procurement have featured articles on understanding the current spend situation, how to use data to find savings opportunities, category analysis and how to use data to prepare for the contracting process. This month’s article...
Procurement can sometimes
Procurement can sometimes feel like it happens in a vacuum. End users aren’t always involved in the process and even when they are, they aren’t always privy to the larger picture procurement teams are working toward. This makes it vital for procurement departments to be able to effectively communicate their achievements. In some cases, suppliers who have participated in the bid process offer metrics which track the savings and added value they provide. These suppliers are typically practiced at displaying metrics in a way that makes sense to viewers outside of the procurement process. This facilitates step 4 of the “5 Steps to Communicating Value,” by assisting procurement officials with managing savings data. The likelihood that suppliers will track this data depends on the type of service they provide. Companies whose business models are based on offering discounts will likely have these metrics in place. For example, if a company develops an Equipment Maintenance Management Program that offers a discount off of an organization’s previous equipment maintenance contracts, the company providing the program will likely be able to effectively track and display the total savings to the organization.