Accenture’s approach to CLSM centers on how to manage third-party spend that:
- Provides deep visibility into everything that influences Accenture’s business spend.
- Identifies what Accenture should be spending.
- Puts in place the infrastructure to sustain savings and value over the long term—while building a diverse, responsible supplier base that makes the supply chain more resilient and responsible.
The key to CLSM is its ability to bring together procurement, finance and the business to collaboratively agree, speak the same language and make insight-based decisions around the full range of potential opportunities. Doing so “closes the loop” with planning and budgeting activities. It effectively helps make everyone in the business a part of procurement, so that all value opportunities are captured and maximized. At the same time, it helps transform procurement itself to make the organization more efficient, data driven and strategic.
CLSM is a comprehensive approach that can assist in cost reduction that is unfamiliar to most companies—it covers every type of spend across the enterprise, not just certain categories. It’s extensive—it goes beyond pure dollars and cents to cover value that doesn’t show up on the profit and loss sheet (for example, cost avoidance and consumption). And it’s durable—it fosters a cultural and behavioral change so CLSM simply becomes the way a company does business, enabling benefits to continue to accrue over time.