I'm excited today to announce that NPI Financial has joined Spend Matters as an Associate Sponsor. NPI Financial is an Atlanta-based services firm that's laser focused on company cost reduction in a handful of categories: IT/telecom/outsourcing and transportation. Over the years, I've had numerous conversations with the firm's management team and I've found that they both position themselves and deliver results in a context that feels quite different from that of a more traditional consultancy. Indeed, they straddle the line between consultancy, category research/benchmarking firm and direct negotiator. But despite having a somewhat nuanced, knowledge-driven approach to category savings, their approach is catching on in the market, both directly with company executives as well as with private equity firms.
NPI Financial is proof that a Spend Management focused advisory firm does not have to be all things to all people to be successful. By going deep on a handful of often highly leveragable spend areas common to a majority of organizations, they've proven the ability to build a firm at a rate that scales and delivers savings beyond what a more typical non-expert pyramid staffing structure delivers. They've also proven at the same time that both contingency and subscription pricing models are appropriate in the advisory world under different circumstances. For companies which are used to paying $50K-$200K a week for an on-site consulting team from a better known firm, NPI's approach could very well be a breath of fresh air for two of their largest spend areas.
Spend Matters research suggests that there is a growing need for category-intelligence driven approaches to sourcing and supplier management. Moreover, budgets are typically rising in companies for these types of services as well. By leveraging external benchmarks, forecasts and expertise, organizations will be in a stronger position to weather the volatility that many -- including us -- are forecasting for the coming years. In the areas of IT/telecom/outsourcing and transportation (especially small parcel, ground freight and international logistics), NPI Financial offers a unique approach to help companies both maximize and sustain savings based on this type of benchmarking and category intelligence. Part AT Kearney Procurement Solutions, part Gartner and part Hackett for the categories in which they cover and focus on, NPI pieces together its approach in a novel way. This is why I'm truly psyched they're our latest Spend Matters sponsor. Please join me in welcoming NPI Financial to our virtual pages.