Why do I need a spend management methodology?
We believe spend management is a cyclical process that is critical to the overall success of your business. By controlling and optimizing the money your company spends on transportation and technology, you can create long-term and sustainable savings – dollars you can spend more wisely in other areas.
Unfortunately, most companies aren’t sure how or what to change in their current purchasing process to reach this level of effective spend management. That’s why NPI has developed Level 5™ Spend Management.
What is Level 5™?
The Level 5™ Spend Management methodology is a collection of processes, best practices
and benchmarking tools used to deliver our spend management services. It’s also used
to arm our clients with the power to optimize their technology and transportation
spend beyond engagements with our team. Our methodology is delivered in three
defined phases – Analyze, Advise and Execute.
Modeled after the Software Engineering Institute’s (SEI) Capability Maturity Model Integration method for product development, Level 5™ is a proven and rigorous approach to achieving fair market value for your technology and transportation purchases.
Why do we call it Level 5™?
The traditional purchasing hierarchy consists of five levels: business justification,
technical requirements, vendor selection, legal terms and conditions and pricing.
Today’s companies fall short at many of these levels, but none more so than pricing.
Level 5™ Spend Management drives purchasing effectiveness at each of these levels, with a concentrated focus on pricing. The result? Our clients reach the highest level of purchasing effectiveness and that translates into sustained savings and vendor partnerships that are strategically aligned to your business goals.
