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Accenture Spend Trends Report—Q1 2015

Read about the latest supply market trends and insights driving procurement strategy.

Welcome to the latest edition of the Accenture Spend Trends Report, a quarterly publication that summarizes the top market trends affecting major spend categories—from Marketing to Logistics to Energy and many others—and outlines actionable insights that you can leverage to drive strategic value in your organization.

The content of the Accenture Spend Trends Report is drawn from our category experts’ and editor’s in-depth analysis of macro factors as well as aggregated spend, savings and project data, and outlines insights from each major spend category along with actions to consider in developing spend optimization strategies.

Highlights

Highlights from the report include:

Q1 Spend Trends: The Big Five

  • Logistics: Mergers & Acquisitions (M&A) Add Another Potential Cost Driver: Over-the-road logistics remains a supply constrained, price-pressured market. Now, with more investor capital driving healthy M&A activity in the sector, market consolidation adds another price risk for shippers to closely monitor.
  • IT: Trend Toward Enterprise Agreements May Offer More Risk than Benefit: Interest in enterprise license agreements (ELAs) is on the rise among our clients. However, ELAs tend to favor the seller, and buyers should carefully evaluate the real value of an ELA vs. the risk of supplier lock-in and over-licensing.
  • HR: With Health Care Costs in Flux, Pharmacy Benefits May Represent an Opportunity: With the full impact of U.S. health care legislation still to be fully realized, health care costs are in major flux. Pharmacy Benefits Management (PBM) is a highly complex area, but an opportunity to explore for cost savings opportunity.
  • Travel: Oil Price Decline Not Showing up in Lower Travel Costs: Jet fuel prices, airlines’ biggest cost driver, are declining, but those costs savings have not translated into lower fares thanks to tight industry capacity. In this environment, buyers should get creative with ancillary fees while looking for chances to target fuel surcharges.

  • Packaging: Understand the Impact of Input Costs to Drive Productive Negotiations: The packaging sector is strongly impacted by input costs in the form of oil derivatives, energy costs, and labor. Using detailed cost modeling to understand supplier and industry margins can level the negotiating playing field in light of major market moves like the recent oil price swoon.

We hope you enjoy reading this quarter’s report and the insights it has to offer.