Noosh 2014 Benchmark Report Reveals Efficient Collaboration May Reduce Project Costs
Collaborative Sourcing Events Lower the Overall Project Cost by 20.7 Percent, Says Report
Noosh, a provider of web-based integrated project and procurement management technology for business service providers, published its “2014 Project & Procurement Management Benchmark Report,” which reveals teams that collaborate and employ collaborative sourcing strategies see significant cost savings per project and manage projects more efficiently.
The report, which is an evaluation of Noosh customer survey data and an analysis of actual projects managed within the Noosh SaaS platform from 2010 to 2013, also highlights the critical function of reporting on processes. Findings show project teams that collaborate on a central platform are able to manage change better and write significantly fewer change orders per project.
“We are pleased with the findings of our 2014 report as they reflect the current trends in the industry and emphasize Noosh’s potential for positively impacting the future of project and procurement management,” says Ofer Ben-Shachar, CEO of Noosh.
SCMR Contributing Blogger, Robert A. Rudzki, recently noted that procurement and finance understand that they ought to work together and share information.
“But, that collaboration is still, in general, rather superficial and intermittent at most companies,” he says.
Nonetheless, this report found:
• Collaborative sourcing events lower overall project costs by an average of 20.7 percent. The act of collaborative sourcing (multiple bidding on one central platform) results in 20.7 percent average savings, when comparing the lowest estimate versus the average of all estimates.
• An average project team has an average of 6.9 members and collaborates with an average of 4.1 companies per project. The research shows that more collaboration is required to execute higher value projects
• Total quantities per line item are dropping, and percent of small orders is increasing. Custom orders, small runs and targeted marketing campaigns are changing the project and procurement management process. Fifty-one percent of all orders have fewer than 1,000 pieces. Large order quantities remain steady, but mid-size orders are rapidly shrinking.
The data for this report was analyzed from hundreds of global brands and represents nearly $12 billion in project management transactions to look at industry-wide trends. The market segments surveyed include marketing and print service providers, engineering services, major syndicated media and enterprise shared services.
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
Subscribe to Logistics Management Magazine!Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!
Information Management: Wearables come in for a refit 2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand View More From this Issue