Some reinsurance and insurance companies do not pay enough attention to non-indemnity-related costs; ineffective purchasing strategies and processes in this area may mean you are increasing your exposure to risk as well as missing out on opportunities for cutting costs and improving operational efficiency. Unlike a number of insurance losses, these non-indemnity-related costs are, to a degree, controllable if you use a technique called category management. By applying this discipline, you can introduce consistent and managed quality levels, reduce purchasing risk and improve the effectiveness of your spend by up to 40%. Category management also ensures best practices in procurement, improving your supply chain management.
Purchase risks are not just financial. As well as complying with international trade controls in relation to terrorism and money-laundering, companies must actively consider ethical and sustainability factors when selecting suppliers and products/services.
Effective category management also looks at managing demand and seeking alternative solutions to traditional purchases, for example considering video conferences instead of traveling.
Categories that we have expertise in include:
- Professional Services, including: Consultants, Legal, Marketing, Advertising, Media and Communication
- Contingent labor, including: Contractors, Temporary Staff, Experts, Trainers, Lecturers, Cleaners
- Office Supplies/Building Services
- Travel, including: Air, Car, Train, Hotel
- Governance, including: International Trade Controls, UN Global Compact
- Claims non-indemnity spend, including: loss adjusting, inspections, legal fees and subrogation.
- Events and Seminars
- Catering – Food and Beverage
The service we offer will deliver the following results:
- Reduced costs (money out and admin costs), giving greater return to shareholders
- Reduced risks (money-laundering, uncontrolled spend, ethical sourcing, corporate social responsibility)
- Procurement/Sourcing area will be seen more as valued business partner
We can provide a range of services to work with or supplement your in-house procurement team. For example, we can provide resources for:
- Analysis of spend data
- Contract negotiation
- Process review/improvement and implementing category management
We have a network of experienced Category Managers and teams who are skilled at performing data analysis. We also have established a number of processes and tools for analyzing non-claims costs and for strategic planning.