Round table session held on 18th August 2020
About the session
become much more popular for busy-buyers in recent years, and they are perhaps
set to become more popular as we emerge from the pandemic lockdown towards a
new business normal.
teams are soon likely to be asked to review security of supply and complete
risk management plans on vital DIRECT spend supporting operational priorities –
re-shoring, re-sourcing or dual-sourcing is likely in many cases.
re-sourcing INDIRECT categories will also be work that is needed to be done in
a timely (if inconvenient) manner; as smaller suppliers perhaps struggle to
continue post Covid-19 – especially after 30th September, as subsidies cease.
priorities and DIRECT spend dominating attention, it is not easy to justify any
detailed market sourcing exercises for non-essential spend categories. Yet to
avoid savings from the past unwinding, the work will be needed now.
AGGREGATORS can offer a quick solution, usually without the downside of a
poorer deal. Today, several aggregators can offer off-the-shelf deals for a
wide range of indirect and semi direct categories (around 20-35 categories in
most cases) that offer pre-negotiated deals on fair industry terms, with
attractive base discounts, achievable spend targets for quarterly cash rebates,
excellent spend-tracking data, and the benefit of leveraging other buyers
With no commitment
usually required on contract term, you can still opt out easily downstream and
re-source yourself when you have the time.
What’s not to like?
Jonathan Dutton FCIPS
is an independent management consultant specialising in procurement, a PASA
Brand Ambassador, and a non-executive and columnist for SUPPLY CLUSTERS – an
aggregator in NSW> He also counts at least two other aggregators as clients
from the past. He is also the former founding CEO of CIPSA.