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Spend Analysis Pro Tip #8 – Don’t Ignore Niche Players

Just because you can consolidate your supply base doesn’t mean you should. It’s important to understand the strategic value that each supplier brings your organization. One way to do this is by collaborating closely with other departments within your organization.

IT, Marketing, and other departments often complain that Procurement fails to understand the strategic nature of their supplier relationships. Breaking down silos can lead to illustrative and informative conversations. Oftentimes, these conversations will help Procurement uncover the sort of strategic value-adds that a spend analysis cannot show.

Before attempting to consolidate your supply, take care to interview internal stakeholders from every department within your organization. Learn what they look for in a strategic partnership, and apply their objectives to your spend analysis. You’ll not only better identify the right suppliers, but you’ll help encourage cross-department collaboration.