Sourcing and Procurement Consulting: Unique Challenges and Opportunities in Mexico and Latin America


My colleague Xavier Olivera recently shared a number of thoughts on the state of sourcing and procurement consulting in Mexico and Latin America on Spend Matters México y América Latina. In his commentary, Xavier observes that a number of firms are already established in the market or entering it aggressively including Accenture, PWC, Capgemini, KPMG, AT Kearney and others. A number of these firms have long been in the region but are only recently ramping up their practices within procurement and supply chain.

Moreover, the sector is shifting. Xavier questions how consulting relationships are changing with increased market demand for procurement services, how technologies are changing to support procurement organizations and how firms are changing their makeup to meet demand (e.g., offering a range of services from expert contractors to traditional management consulting to managed services to complete business process outsourcing).

The demand is certainly apparent. As Xavier observes, “For many Latin American companies, operations remains a major pain point and requires significant attention from leadership; consultancies can help address these pains points.” The mix of how firms go to market in the region is changing significantly, however, including the scaling up of both process and technology expertise internally.

Of course other challenges set Latin America apart as well:

  • Country-by-country VAT and regulatory compliance (e.g., invoicing requirements)
  • Lack of supply chain/sourcing best practices (e.g., limited/no penetration of sourcing optimization and supply chain network design capability)
  • Lack of enough skilled resources to support technologies from Ariba, SAP, Oracle, Coupa and other providers without large internal integration teams (GEP is an exception in this regard – it brings its own talent to deploy in the region)

We look forward to continuing to cover the rapidly expanding procurement and supply chain consulting landscape in Mexico and Latin America.

Want an insider perspective on the topic? Read: Spend Matters México y América Latina.

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