The Four Vs of Fixing a Decentralized Procurement Model

Capitalizing on opportunities to share resources and aggregate spend across all business units


A key learning about business transformation in sourcing and procurement is knowing the Four V methodology, clearly bringing the organization and spend to a high degree of spend under management processes of 85 percent or above. When defining what that means in the organization, keep a keen eye on the following questions:

  • Is spend in a competitive environment?
  • Is spend under contract or written agreements?
  • Are the contracts under a compliance management process?
  • Is spend under a Purchase Order Management Approval Process?
  • Is spend visible through e-procurement technology?

Asking the above questions will challenge the CFO, procurement professionals and stakeholders as to how well-managed spend is within their organization. It’s a very powerful method for changing the mindset in the organization about best practice spend management.

Jack Hess is Vice President of Solutions and Business Transformation at Xchanging Procurement Services

  • Enhance Your Experience.

    When you register for SDCExec.com you stay connected to the pulse of the industry by signing up for topic-based e-newsletters and information. Registering also allows you to quickly comment on content and request more infomation.

Already have an account? Click here to Log in.

Enhance Your Experience.

When you register for SDCExec.com you stay connected to the pulse of the industry by signing up for topic-based e-newsletters and information. Registering also allows you to quickly comment on content and request more infomation.

OR

Complete the registration form.

Required
Required
Required
Required
Required
Required
Required
Required
Required
Required
Required