What are “services organizations purchase”?

For most organizations, every department will purchase services from suppliers. There are  hundreds of these purchased services that are often managed by the department receiving the service. 

See below for examples:

  

 
 

And there are many more! 

A few interesting notes on services organizations’ purchase 

        • When organizations pursue comprehensive expense reduction engagements, most procured services are not analyzed.
           
        • The average savings from pursuing procured services is 13%.
           
           
        • The typical supply chain department manages only 20% of the services organizations purchase. 
           
           
        • Services are often very dependent on geography, supplier expertise, and the scope of services provided. 

        • Typically the expense of services is greater than supplies purchased by organizations. 
           
        • Department leaders and executives are often involved in the selection of service suppliers.

         

         
        130326_edt_caption_below_Pie Chart of Expenses in Typical Organization.jpg