I often recount when speaking at events how the biggest, nastiest secret of FreeMarkets -- shhhh!!! -- and just about all other strategic sourcing services and solution providers is the fact that a material percentage of identified savings opportunities go unimplemented for various reasons. The fact that only 60% or 70% of what either an internal procurement organization or external provider identifies ever drops to bottom line to become realized savings is a fact you won't often read about, but one that I have lived first hand on the sourcing front line for years. Why do companies have a hard time driving savings to the bottom line? If you want to hear the answer (and what separates out top performers from the pack), you can join Pierre Mitchell and I on a Webinar next Thursday (September 30th) at 1:00 ET as we investigate The Missing Link -- Driving Savings to the Bottom Line.
I'll plan to share my own anecdotes and experience on the topic and Pierre will feature his firm's latest research that shows, among other "top performing organizations drive over 70% higher savings on non-core expenditures to the bottom line by implementing a rigorous and pervasive savings visibility process." I'll dig into some of the specific challenges I've observed over the years when it comes to realizing the full benefits of indirect and services spend savings. And Pierre will provide his usual drink-from-the-fire hose research findings on the topic.
Here are a few teasers:
"90% of Top Performers use mechanisms to ensure proper accountability of validating savings to the bottom line."
"Only 1/3 of study respondents strongly agree that they have a consistent process for identifying and booking savings. Top performers are double that."
What separates out top performers from the pack when it comes to building a true path to savings visibility and realization? Join us next Thursday to find out.