Procurement collaboration is essential for improving the efficiency and effectiveness of procurement, reducing costs, and improving the quality of goods and services. By working together, procurement teams can identify and resolve issues more quickly, improve decision-making, and ensure that all stakeholders have access to the information they need to do their jobs effectively.  

The benefits of procurement collaboration 

Procurement collaboration is a process that involves multiple organizations working together to maximize efficiency, reduce costs, and enhance overall outcomes. It involves the sharing of knowledge and expertise, as well as streamlining processes and procedures to improve the overall effectiveness of the procurement process. FactWise Source-to-Pay offers transparency and holistic insights to leaders, enables teams to negotiate and maintain oversight across multiple subsidiaries/organizations, and allows for customizable RfX approval flows, goods receival, quality check workflows across various entities within an enterprise. 

• Accenture's 2019 study of the automotive industry found that procurement collaboration between companies led to a 20% increase in cost savings and a 40% increase in efficiency. This was achieved through the sharing of resources, such as supplier networks, and the standardization of procurement processes, which allowed the companies to negotiate better prices and streamline their procurement activities. 
• In 2018, Royal Dutch Shell and BP announced a joint procurement initiative that reduced their combined annual spend on goods and services by $500 million. This success was attributed to the sharing of information and best practices, as well as the pooling of resources to negotiate better prices with suppliers. 
• The 2017 Deloitte report on Pfizer and AstraZeneca's procurement collaboration found that it resulted in a 20% reduction in procurement costs and a 30% increase in supplier innovation. This was achieved through the sharing of information and the standardization of processes, which allowed the companies to negotiate better prices and improve the quality of the goods and services they received from suppliers. 
• Walmart and Procter & Gamble's 2016 procurement collaboration resulted in an estimated $10 billion in cost savings over five years. This was achieved through the sharing of resources, such as supplier networks, and the standardization of procurement processes, which allowed the companies to negotiate better prices and improve the efficiency of their procurement activities. 

These examples demonstrate the benefits that can be achieved through procurement collaboration, including cost savings, improved efficiency, and increased supplier innovation. By working together, companies can leverage their collective buying power to negotiate better prices and optimize their procurement activities. 

Maximizing Efficiency Through Procurement Collaboration 

One of the primary benefits of procurement collaboration is its ability to increase efficiency. By pooling resources and working together, organizations can access a larger pool of suppliers, goods, and services. This can help them reduce the amount of time spent on the procurement process.  

Procurement collaboration also helps to improve communication between organizations. By working together, organizations can share information and resources more easily, which can help to streamline the procurement process. This can lead to better decision-making and improved customer service. Furthermore, it can help to reduce the risk of fraud and other unethical practices, as organizations can more easily monitor and audit each other's activities. 

Cost Reduction Through Collaborative Procurement 

Another key benefit of procurement collaboration is cost reduction. By pooling resources and working together, organizations can reduce their overall costs. This is done by reducing administrative overhead and streamlining processes, as well as by leveraging collective purchasing power to get better deals on products and services. Additionally, by sharing knowledge and expertise, organizations can make more informed decisions about which goods and services to purchase. 

In conclusion, procurement collaboration can offer a range of benefits to organizations, including cost savings, improved supplier relationships, increased efficiency, better risk management, and increased innovation. By pooling resources and working together, companies can leverage their collective buying power to negotiate better prices and improve the quality and efficiency of their procurement processes. These successes have been demonstrated through numerous studies and real-world examples, making procurement collaboration a valuable strategy for organizations looking to optimize their procurement activities. 

At FactWise, we are committed to building truly distinctive procurement software solutions that delight users and provide sustainable positive impact to the organizations we serve. We do this by providing transparency and insights to leaders (31% increase in governance), streamlining and automating processes to improve efficiency (20% increase in efficiency), and driving bottom-line impact by unlocking savings potential (25% cost reduction for direct spend).