Based on our extensive experience in external spend optimization, we have identified seven common pitfalls that typically preclude companies from achieving this value, ranging fromnear-sighted focus to lack of performance tracking to siloes within the organization.
So, where to start?
In short: sophisticated levers, cross-functional collaboration, and accurate measurement of the value generated.
Many companies feel they know this theory. But the fact is fewer than one out of six companies can do this in practice.
Companies need to approach this as a Transformation Journey to ensure sustainability and clear accountability from the entire organization. When appropriately implemented, it delivers significant and long-term benefits and has proven to be effective across industries in various contexts.
In order to support our clients in this journey, Oliver Wyman has developed a truly unique value proposition – Spend Smarter – built upon state-of-the-art capabilities and deep industry knowledge.