Recently, SAP’s VP of Network Growth, James Marland, and Andrew Bartolini, Managing Partner and Chief Research Officer at Ardent Partners, got together for a robust conversation on the topic of “The Future of Procurement.” The first conversation revolved around Procurement Innovation. The second, on the increasingly important topic of Risk. The third conversation concentrated on getting a grip on Tail Spend, as well as SAP’s recent acquisition of Fieldglass for Contingent Workforce Management and Concur for Travel & Expense.
Of particular interest to James and Andrew was Gartner’s recent finding that the average procurement organization manages slightly more than 60% of all enterprise spend. Which means procurement is involved in about 60% of all the goods and services that are purchased. Now, organizations are looking to tackle the last 40%, Tail Spend, and for good reason. According to Andrew, “Our research shows that the average procurement organization saves somewhere between 6 and 12% on every dollar of spend that is brought in during the first contract cycle.”
This means that for many organizations there is a lot of value to bringing that last 40% under procurement’s control.
If this is for you and your organization, both Fieldglass and Concur solutions will be present at Ariba LIVE in Munich, 8-10 June. You’ll be particularly interested in these breakout sessions: