10 Reasons Why Companies Fail to Control Indirect Service Spending:

Dave HenshallStrategic Sourcing


    10 Reasons Companies Fail to Control Indirect Service Spending

       Many companies still fail to control indirect services as well as best in class organization.


Here are some suggestions as to why they fail:

1. Tactical, not strategic focus
2. Lack of governance around the services spend
3. Fragmented spend & performance data
4. Inability of users to accurately specify requirements
5. Too many suppliers fragment spend resulting in loss of leverage
6. Non-existent or week sourcing processes
7. Failure to invest in managing supplier performance
8. Heavy reliance on personal relationships
9. Priority on fast delivery, not best TCO
10. Inadequate information systems

Can you add to this list?