Methodology

Sustainability

Mitigating the Law of Diminishing Returns

Not easily said or done, but essential to any indirect program, sustainability is essential to the development of a best in class program. Historically within organizations we have seen the application of traditional direct sourcing methodologies applied to the indirect categories. However, these programs are often first-year successes but results plummet after the first year’s realized results.

At HCMWorks, we create sustainable programs that can continue to prove results well beyond Years 2, 3, & 4. In a recent client case, we saw Year 4 savings return back to Year 2 previous optimization. Market conditions certainly assisted these results; however, without a sustainability process put in place, the Year 4 opportunity would never have been realized.

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