Spend Management

The client.

A Midwestern state-centralized procurement agency.

The business issue.

This agency, which recently had completed a strategic sourcing initiative, sought to review its existing procurement processes and technology tools in order to identify any potential gaps that would impact its ability to realize cost savings.

The solution.

Claro Group professionals worked with the agency to review existing procurement processes, technology tools and supplier relationship management strategies.

The project team performed a four-week assessment of the State's existing procurement processes compared to best practices; reviewed its existing technology tools used for sourcing, fulfillment and vendor management; and reviewed its approach to supplier management.

The team conducted interviews with key process stakeholders and portfolio managers. In addition, it conducted a sustainability review that included commodities across the various portfolio/categories, including:

• Temporary labor
• Food
• Office supplies
• Facilities management
• IT hardware
• Wireless communications

Finally, the team created a summary report that assessed the State's current ability to sustain savings, identified technology tool improvement opportunities, and outlined a framework for more effective spend management.

The results.

The State utilized the report to secure funding for an enterprise spend management program that improved spend visibility. This process also provided the guidance necessary to:

• Select improved technology tools.
• Implement a formal supplier relationship management program.
• Equip the State's procurement and related personnel to support the newly defined spend management vision.