- Published: June 2010
Consulting Procurement State of the Market
- Published: June 2010
- 25 pages
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.
- 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 organization’s procurement effectiveness.
Highlights of this title
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.
Key reasons to purchase this title
- 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.
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About the co-author
Growth in third-party management consulting
Pressure on third-party management consulting spend
Management of third-party management consulting spend
Importance of third-party management consulting performance
Use of consulting among enterprises
Budget overruns a significant issue
Weak value realization
Mixed pricing methods
Procurement organization headcount
Spend decisions not led by procurement
Business planning is patchy
Procurement often not standardized
Scope of work not always pre-agreed
A balance of standard contracts prevails
Competitive tendering not common enough
Good levels of market intelligence
Weak supplier performance management
Ask the analyst
List of Figures
Figure 1: Annual spend on consultancy services
Figure 2: Annual consulting engagements
Figure 3: Number of consultancies used
Figure 4: Engagements overrunning the original agreed budget
Figure 5: Engagements of which the value is measured
Figure 6: Pricing basis for over half of total spend
Figure 7: Number of consulting procurement staff
Figure 8: Consultancy procurement staff levels as a function of spend
Figure 9: Overall responsibility for consultancy spend
Figure 10: Approaches to planning consultancy spend
Figure 11: Engagements utilizing a standard process
Figure 12: Engagements with pre-agreed scope of work
Figure 13: Use of a standard contract format
Figure 14: Engagements that have underdone competitive tendering
Figure 15: Use of market intelligence in consultancy procurement
Figure 16: Information- and knowledge-sharing
Figure 17: Use of standard information systems
Figure 18: Use of a standard process for managing supplier performance
|Electronic (PDF)||The report will be emailed to you. The report is sent in PDF format.||This is a single user license, allowing one specific user access to the product.|
|Hard Copy||A printed copy of the report will be shipped to you.|
|Enterprisewide||The report will be emailed to you. The report is sent in PDF format.||This is an enterprise license, allowing all employees within your organisation access to the product.|