Combination of market pricing analysis and purchasing methodology prevents overspending pitfalls in technology purchasing
ATLANTA – February 7, 2006 –NPI, the leader in technology spend management and fair market value analysis, today announced the introduction of its Level 5 Spend Management framework. Designed to prevent overspending for enterprise technology purchases, Level 5 Spend Management is a combination of best practices, market pricing analysis and purchasing methodology for traditionally difficult spend management categories – such as information technology and telecommunications. This framework is part of an industry-wide trend to create standards for technology procurement and to ensure companies receive fair market value for products and services.
NPI’s Level 5 Spend Management optimizes a company’s technology procurement efforts throughout the purchasing hierarchy. Traditionally, this hierarchy has consisted of five levels: business justification, technical requirements, vendor selection, legal terms and conditions and pricing.
Level 5 Spend Management drives purchasing effectiveness at each of these phases, with a concentrated focus on pricing. By providing an insightful view of market data, pricing flexibility and vendor collaboration best practices, NPI helps companies obtain fair market value for major technology purchases. This mix of intelligence, insider knowledge and strategy delivers a powerful impact – often yielding substantial cost savings in technology spend.
Through visibility into hundreds of technology transactions every month, Level 5 Spend Management enables NPI clients to save up to 50 percent on specific IT investments. This can translate into millions of dollars.
“The IT marketplace is a lot like the old wild west. No one is around to make sure technology vendors consistently provide a fair price for a fair product,” said Jon Winsett, managing partner for NPI. “This means that no matter how careful companies are or how well procurement executives understand technology purchasing, there is still a high variable of vulnerability at the pricing phase. Level 5 Spend Management mitigates this risk.”
NPI is a privately-held company that provides assistance for its customers in implementing rigorous processes for making sound spend management decisions. Using a combination of market experts and proprietary methodologies, NPI provides assessments of a variety of traditionally difficult spend management categories – information technology, telecommunications and transportation – to ensure that expenditures and operating expenses are in-line with current market conditions. NPI leads this emerging best practice, offering procurement expertise, a fair market value database and experience from both sides of the table with quality and integrity. For more information, please visit www.npifinancial.com.
