After a period of immense volatility, the banking sector appears to be reaching some level of normalcy. The financial crisis of 2008 was the trigger for drastic changes in the way the industry manages spend. As revenue streams froze and the spending behaviors of banks become front-page news, procurement was invariably thrust into the spotlight as a means of preserving the reputation and profitability of these organizations. Procurement teams operating in the banking environment face a challenging landscape when it comes to controlling spend. A great deal of change is needed, both structurally and culturally before banks can truly take control of their spend. However, procurement technology, if used effectively, can be a vital catalyst for these required changes.
What are they buying? Banks are essentially service organizations. The vast majority of their spend passes the professional service category (roughly 40%) in the form of management consultants and other temporary workers. Information technology and facilities management make up the next largest spend categories accounting for roughly 20% of total spend each. Spend on services is traditionally more difficult to analyze, understand and control than spend on goods, and this presents a challenge for a service heavy industry like banking. However, by leveraging procurement technologies, leading banks are addressing these areas with great success.
Diptarup Chakraborti, Vice President, Global Marketing, Zycus
Oil and Gas firms had a rough ride in 2014; the oil price dropped to below $50 USD a barrel, salary freezes were implemented and thousands of staff members were laid off. As the purse strings of oil and gas producers tighten, the importance of controlling costs and managing spend become ever more apparent. In order to succeed in the changing oil and gas environment, firms need to first understand how to get more from the money they spend (enter procurement). Listed below are a number of the key areas that oil and gas firms are likely to focus on over the coming 12 months. Also outlined is the critical role that procurement functions can play in helping their organization to achieve success in these areas.
Diptarup Chakraborti, Vice President, Global Marketing, Zycus
Procurement for Banking: Adjusting to the New Norm
After a period of immense volatility, the banking sector appears to be reaching some level of normalcy. The financial crisis of 2008 was the trigger for drastic changes in the way the industry manages spend. As revenue streams froze and the spending behaviors of banks become front-page news, procurement was invariably thrust into the spotlight as a means of preserving the reputation and profitability of these organizations. Procurement teams operating in the banking environment face a challenging landscape when it comes to controlling spend. A great deal of change is needed, both structurally and culturally before banks can truly take control of their spend. However, procurement technology, if used effectively, can be a vital catalyst for these required changes.
What are they buying? Banks are essentially service organizations. The vast majority of their spend passes the professional service category (roughly 40%) in the form of management consultants and other temporary workers. Information technology and facilities management make up the next largest spend categories accounting for roughly 20% of total spend each. Spend on services is traditionally more difficult to analyze, understand and control than spend on goods, and this presents a challenge for a service heavy industry like banking. However, by leveraging procurement technologies, leading banks are addressing these areas with great success.