Consulting pays

June 17th, 2008 at 05:23am David Bush - Iasta

There was an interesting study done by Management Consultancies Association (MCA), regarding the value and usage of procurement consultancies during economic turbulence. Not surprisingly, the results came back strongly in favor of the continued practice of using consultants.

According to the latest SM100, 54 per cent of purchasers have not been put off commissioning consultancy over the next six months.

This information was UK based, but I can say definitely, that I have seen nothing but more interest in consultative services for the last year. Of course, some of this could be attributed to Iasta moving into a newer, solution oriented position for organizations. However, I think it is generally a much needed service.

One thing corporations are doing…looking under every rock for cost savings and avoidance possible.

One thing corporations are not doing…hiring or adding head count.

There it is; the need for experience and rapid execution. Consultants also bring in an outsiders view, which can be very effective for energizing a team and understanding what is working for other companies.

Another buyer stressed that if consultants are used properly, they will always be important. “Cutting back because of the changing economic climate seems to suggest that the reasons consultants were being brought in previously were not thought through and a little frivolous,” said Gary Moore, strategic procurement manager at Bournemouth Borough Council. “You need someone from outside an organisation to deliver a message that will be listened to and acted upon.”

This love fest for consulting and sourcing advisory services is not without a strong word of caution, however. You can spend a truckload of money on consulting firms that do the classic “A-team sale” + “C-team delivery”. I have seen the greenhorns come in, many times, and the results can range from inefficient to disastrous.

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Entry Filed under: General, Supply Management Best Practices