PeercastTM <\/sup>attendees participated in a poll to indicate how they would describe their success in preferred vendor compliance:<\/p>\n The poll results revealed that most organizations are not realizing the full benefits that they have negotiated with vendors. In fact, 29% acknowledge that they are leaving money on the table through poor compliance or, worse, not measuring compliance at all. It is not that unusual for components of the P2P process to be functional silos and never really connect to ensure the benefits of the agreement are realized. Global Process Owners can be the ones who connect the dots, measure compliance, tally the savings, or identify where and why savings were lost.<\/p>\n As with so many things, the 80\/20 rule is alive and well as it relates to preferred vendors. Their goal is to have 80% of their spending come from 20% of their suppliers. Those suppliers are \u201cpreferred vendors\u201d and have negotiated pricing and terms. There can be multiple preferred vendors per spend category. Other vendors can be \u201capproved\u201d vendors or \u201cone-time\u201d vendors. Analysis has indicated that the use of preferred vendors can result in 5-7% cost reductions versus the alternatives so compliance is critical. The message is clear:<\/p>\n Drive the volume of spending through preferred suppliers to realize the benefits of negotiated prices and terms and increase our leverage on future negotiations. <\/em><\/p>\n To drive compliance, the featured company uses a few different approaches categorized as people, process, and technology. A few of the items discussed are noted below.<\/p>\n People<\/span><\/strong><\/p>\n Process<\/span><\/strong><\/p>\n Technology<\/span><\/strong><\/p>\n What are you doing to increase preferred vendor compliance?<\/p>\n Who are your<\/em> peers and how are you collaborating with them?<\/p>\n 1 <\/sup>\u201cPeercastsTM<\/sup>\u201d are private, professionally facilitated webcasts that feature leading member company experiences on specific topics as a catalyst for broader discussion.\u00a0 Access is available exclusively to Peeriosity member company employees, with consultants or vendors prohibited from attending or accessing discussion content.\u00a0 Members can see who is registered to attend in advance, with discussion recordings, supporting polls, and presentation materials online and available whenever convenient for the member.\u00a0 Using Peeriosity\u2019s integrated email system, Peer MailTM<\/sup>, attendees can easily communicate at any time with other attending peers by selecting them from the list of registered attendees.<\/p>\n <\/p>\n Peeriosity members are invited to log in to www.Peeriosity.com<\/a> to join the discussion and connect with Peers.\u00a0\u00a0 Membership is for practitioners only, with no consultants or vendors permitted.\u00a0 To learn more about Peeriosity and the Senior Executive offering included in the membership Click here<\/a><\/p>\n <\/span><\/span><\/span><\/p>","protected":false},"excerpt":{"rendered":" Procurement can negotiate the best deal on the planet, however, the benefits will never be realized if users intentionally or unintentionally bypass preferred vendors. Coordination across the entire Procure-to-Pay (\u201cP2P\u201d) process is essential to avoid the savings being an impressive PowerPoint slide but never seeing the bottom line. A recent Peeriosity PeercastTM in the Accounts […]<\/p>\n <\/span><\/span><\/span><\/p>","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[3],"tags":[],"acf":[],"yoast_head":"\n<\/p>\n
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