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Another Take on Accenture’s SRM Study

Last week, I posted an analysis of Accenture's recent SRM report. Now, Manufacturing Business Technology has a detailed take on the study as well. Tim "sound-bite" Minahan and Mickey North Rizza are quoted extensively. In the article, Tim refers to a new law of "diminishing returns" in procurement. "You can only take so much out of a supplier's profit margin," Tim is quoted as saying. "So now companies are into compliance -- how to make sure contracts are met in terms of service level, on-time delivery, etc. They're also looking at spending patterns ... [in addition] buying organizations [need] to shift methodology. They need to use technology not to beat suppliers up on price, but to get more flexibility." I'm certainly one for flexibility, but I would not jump the gun as much as Tim. I think there's still plenty of room to let competition run its course, even in today's environment. Indeed, the hammer never goes away -- it just gets smarter.

- Jason Busch

This entry was posted on Friday, June 23rd, 2006 at 5:15 pm and is filed under Best Practices, Case Study, Outsourcing, Services Procurement, Sourcing, Supplier Management, regulation, regulations, supply risk, webinar. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.