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Indirect Category Sourcing Savings: Fact or Fiction? Delivering Credible Benefits from Sourcing and Category Management Programmes

Delivering real benefits from category management and sourcing programmes is a core challenge for senior procurement leadership. Whilst category management has worked well for many organisations, we still see some fundamental issues for procurement, particularly in ensuring tangible benefits are delivered and credibly reported. Too often, the “savings” figures presented by procurement are simply not believed by senior management.

In this paper, co-authored by Peter Smith (Spend Matters) and Ed Cross, Executive Director, Procurement Services at Xchanging (XPS), we look at why most organisations would benefit from more focus on the area of programme and delivery management, including rigorous benefits tracking and reporting. We also look at "the Vault" – a new tool developed by XPS which combines capability to support effective programme management and governance with rigourous savings tracking and verification.

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