What We Think

The True Cost
of Procurement

The true cost of procurement is often far greater than the amount paid for goods and services. This is because purchasers frequently operate with incomplete knowledge—both of what they are buying and of the broader consequences of their decisions. In addition, the governance and administrative burden surrounding procurement can be substantial and, in many cases, poorly understood.

We break the true cost of procurement down into the following categories:

BlogExit Cost. The price of leaving a platform is agreed on the day you join it.EfficienciesReporting Lag. A month-end view answers questions the business asked weeks ago.AIModel Confidence. An AI answer is only as good as the record it was trained on.CROHandover Loss. Information degrades every time work changes hands.Professional ServicesUtilisation Illusion. A busy team is not the same as a profitable one.CybersecurityAccess Sprawl. Permissions accumulate faster than roles are reviewed.EfficienciesIntegration Debt. Every point-to-point connection is a promise someone will have to keep.ValuationRenewal Autopilot. Contracts that roll over unread are priced as if they were never tested.ProcurementShadow Spend. The purchases nobody planned still land on the same balance sheet.

The True Costof Procurement

We break the true cost of procurement down into the following categories:

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The True Cost
of Procurement