How Good Are We?
SVM Organization's Rugged Region: Is The Fight Still Going On?
Supplier Categorization For Business Value
As companies shift their technology spend into areas that attract, serve and retain, customers, sourcing and vendor management professionals find themselves in the “crossfire” of digital disruptions. As a result of the growing demand for business technology, companies depend more and more on the external supply of technology suppliers, and struggle with an increasing volume of contracts and vendors. This is creating significant challenges: as experienced resources are scare and budgets for SVM organizations are small, organizations have to focus their sourcing and vendor management resources on those contracts and relationships that deliver the biggest value for the business. This means that the traditional methods for supplier categorization (primarily spend-per-vendor) are less relevant than new methods that focus on business value and market substitutes. This report describes the key criteria for categorizing vendors and how to use the results of such categorization to align organizational efforts.