Consulting Procurement State Of The Market - Market Research Reports On Aarkstore Enterprise

Introduction

Introduction

The last twenty-five years have seen a huge increase in the use of 3rd party management consultants. This report provides analysis of Orbys recent survey into enterprises procurement of use of these 3rd party consultants, providing a health check on the state of the market.

Scope

*Based on a survey of chief procurement officers, market segment managers, as well as senior financial and project managers in 250 organizations.

*Survey questions were derived from Orbys Five Level Maturity Assessment Model, used to evaluate an organizations procurement effectiveness.

Highlights

For many organizations, annual spend on third-party management consultants is now a very significant visible (and until recently growing) proportion of their turnover, overall people costs and/or procured indirect/non-inventory-based goods and services.

Our survey indicated that, while there were some organizations that managed their spend well, there were a lot more where the approaches and practices in this market sector were variable, inconsistent and fragmented.

Reasons to Purchase

*Provides a method of benchmarking your organization's procurement policies and performance against other peers and competitors.

*Highlights areas where procurement processes should be improved, identifying best and common market practice.

Table of Contents :

Overview 1

Introduction 1

About the co-author 1

Summary 1

Methodology 1

Executive Summary 2

Growth in third-party management consulting 2

Pressure on third-party management consulting spend 2

Management of third-party management consulting spend 3

Importance of third-party management consulting performance 3

Table of Contents 4

Table of Figures 5

Market Analysis 6

Use of consulting among enterprises 6

Budget overruns a significant issue 9

Weak value realization 10

Mixed pricing methods 11

Procurement organization headcount 13

Spend decisions not led by procurement 15

Business planning is patchy 16

Procurement often not standardized 17

Scope of work not always pre-agreed 18

A balance of standard contracts prevails 19

Competitive tendering not common enough 20

Good levels of market intelligence 21

Limited knowledge-sharing 22

Weak supplier performance management 24

APPENDIX 25

Methodology 25

Further reading 25

Ask the analyst 25

Orbys consulting 25

Disclaimer 25

List of Figures

Figure 1: Annual spend on consultancy services 6

Figure 2: Annual consulting engagements 7

Figure 3: Number of consultancies used 8

Figure 4: Engagements overrunning the original agreed budget 9

Figure 5: Engagements of which the value is measured 10

Figure 6: Pricing basis for over half of total spend 12

Figure 7: Number of consulting procurement staff 13

Figure 8: Consultancy procurement staff levels as a function of spend 14

Figure 9: Overall responsibility for consultancy spend 15

Figure 10: Approaches to planning consultancy spend 16

Figure 11: Engagements utilizing a standard process 17

Figure 12: Engagements with pre-agreed scope of work 18

Figure 13: Use of a standard contract format 19

Figure 14: Engagements that have underdone competitive tendering 20

Figure 15: Use of market intelligence in consultancy procurement 21

Figure 16: Information- and knowledge-sharing 22

Figure 17: Use of standard information systems 23

Figure 18: Use of a standard process for managing supplier performance 24

For more information please visit :

http://www.aarkstore.com/reports/Consulting-Procurement-State-of-the-Market-59261.html

by: Aarkstore Enterprise

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