3 Tips for CFOs and COOs Looking to Initiate the Procurement-as-a-Service Process
Takeaways from Priya Iver and Britt Tunick’s Fireside Webinar
In a compelling webinar discussion, Concertiv CEO Priya Iyer and renowned Financial Journalist Britt Erica Tunick delved into the transformative world of Spend Management. Their insightful Fireside Chat focused on how Concertiv is pioneering in the sector through its innovative Procurement-as-a-Service approach. Concluding the conversation, Tunick sought Iyer's expert advice for CFOs and COOs eager to embark on the procurement journey with Concertiv. Iyer offered 3 helpful tips for initiating the process.
1. Start with Travel
Embarking on a journey to savings with Concertiv often begins with unlocking travel benefits and exclusive discounts. Iyer emphasizes, “There are substantial savings to be achieved. For spends between 500,000 and 3 million dollars, savings are definite, and for expenditures above 3 million dollars, the potential for savings is even higher.”
This is particularly vital for many mid-level firms that do not have specialized travel management resources. With the cost of travel soaring by 48.5% in the LTM ending Q3 of 2023 [Business Travel News], partnering with a firm adept at securing the best travel deals – without compromising on the high standards your employees are accustomed to – is a savvy and strategic move.
2. Combine Procurement and Vendor Diligence
Companies using third-party service providers must comply with SEC regulations by conducting comprehensive vendor due diligence. This process involves performing thorough evaluations before hiring these providers, along with continuous monitoring and keeping detailed records of all due diligence activities. Integrating this with strategic procurement processes can yield a significant competitive edge. Beyond just the cost savings from aligning vendor diligence with procurement, this approach dramatically reduces the administrative burden on your team, streamlining operations and enhancing efficiency.
3. Review Your Insurance
Mastering peer benchmarking for insurance premiums, particularly in corporate and cyber insurance, is notoriously challenging. While traditional insurance brokers might only present you with standard rates, Concertiv steps up the game. It leverages its deep market insights to unearth substantial savings and unexplored opportunities that your company might not even know exist. Concertiv excels in assessing whether your costs align with, exceed, or vastly surpass market standards and then empowers you with expert guidance and formidable negotiating leverage to optimize your financial position.
The First Step to Procurement-as-a-Service Can Unlock Incredible Savings
Embarking on the procurement-as-a-service journey with Concertiv, whether through travel, insurance, market data, or technology, often illuminates cost-saving opportunities across various company facets.
Consider the case of Coller Capital, a UK-based client of Concertiv. Initially honing in on escalating travel expenses, they swiftly recognized the broader benefits Concertiv could bring. This realization led them to expand their engagement to include Market Data vendor management. Over time, Concertiv's expertise enabled Coller to realize substantial savings, achieving an impressive 6.5x ROI. This success prompted them to extend their partnership with Concertiv, incorporating cyber insurance and additional services into their strategy.
The Fireside Webinar with Priya Iyer and Britt Erica Tunick highlights the efficiency and savings achievable through Concertiv's Procurement-as-a-Service model. Focusing on three main areas – optimizing travel costs, combining procurement with vendor diligence, and reassessing insurance strategies – offers a practical guide for CFOs and COOs. This approach not only promises significant financial benefits but also streamlines procurement processes. The experience of Coller Capital vividly demonstrates the potential for substantial ROI and enhanced operational effectiveness by adopting these strategies.
This was the third big takeaway from the enlivening and educational discussion about the benefits of procurement-as-a-service. Review Part 1 and 2 below…
Part 1: How 2023 Has Changed CFOs and COOs Focus on Spend Management for the Coming Years.
Part 2: The Approach and Benefits That CFOs Can Expect From Outsourcing Procurement with Concertiv.
For the complete, in-depth discussion around Spend Management, Watch the Entire Webinar.
Interested in learning more about procurement-as-a-service for your firm?
Learn how leading firms are partnering with Concertiv to reduce spend, minimize risk, and save time across key spend categories.
