Last week we told you about a new research paper authored by Spend Matters UK/Europe’s Peter Smith, titled Indirect Category Sourcing Savings : Fact or Fiction? Delivering Credible Benefits from Sourcing and Category Management Programmes. You can download it for free by clicking the link above.
Getting down to the question of fact or fiction, Peter says: “The final section of the Paper looks at how Xchanging themselves are addressing the issue of benefits tracking and measurement. Of course, this is particularly important for them as an outsourced service provider, as their success – and in some cases, their direct income – depends on showing clients real, tangible benefits.
Savings are then tracked, measured and proven – for instance, data around actual prices paid and use of contracts can be picked up direct from other data sources, such as ERP systems, providing an accurate and credible measure of savings.
Xchanging are rolling the system out to their clients now, and I hope to get some validation from users in terms of how it is working once it is fully established. This whole area of capturing and demonstrating credible savings is going to be one of increasing importance for procurement over the next few years we believe, and the Vault won’t be the only product supporting that. But it’s certainly an interesting addition to the solutions landscape in that area.”