In today’s inflationary and disruptive business environment, breakdowns along the complex global supply chain have caused shipping costs and other expenses to soar. In response to these pressures, retailers are struggling to balance the rising costs they can pass along at the register and how much they need to absorb to retain price-conscious consumers. However, there’s a third option that too many retailers leave unaddressed that can help to mitigate these cost pressures and drive significant bottom-line improvements.

Typically equating to more than 20% of a retailer’s annual revenue, indirect–or not-for-resale–goods and services represent a significant opportunity for profit improvement. While a retailer may have hundreds of dedicated merchandising resources to manage their organization’s direct expenditures, too often, there are only a handful focused on indirect, resulting in the mismanagement of what can be billions of dollars in spending. What if retail leaders invested in indirect spending with the same resources and human capital as they do for direct? LogicSource solutions are tailor-made to address an organization’s full scope of indirect spending, bringing unmatched procurement expertise to drive measurable and sustainable profit improvement for the world’s leading retail brands.

Due to persistent supply chain issues and rising inflation, the cost of goods and services for the Consumer-Packaged Good (CPG) industry are steadily rising. However, a closer look reveals that the supply and demand curve for many CPGs is leveling out. Consumer purchasing has slowed, limiting the ability for organizations to increase prices to mitigate cost increases. Other measures must be implemented to mitigate inflationary pressures and rising supply chain costs.

Typically, indirect goods and services represent 20% of a CPG organization’s revenue. While direct spend is tightly managed across these businesses, indirect procurement teams often lack the resources, focus, and scale for best-in-class buying, representing millions in lost savings opportunities. LogicSource focuses only on indirect spend solutions that are designed by procurement experts to deliver both commercial savings and persistent operational value that improves time to market and profitability. 

Healthcare systems are navigating a set of challenges never before seen in the industry. In today’s recessionary environment following COVID-19, healthcare leaders are facing razor-thin operating margins, talent shortages, significantly reduced elective procedures, declining reimbursements, and sicker patients that require more intensive care. These revenue pressures are limiting the ability for healthcare organizations to invest in strategic initiatives that support their number one priority—to provide better access and care for their patients.

LogicSource provides comprehensive procurement solutions that address these financial pressures. On average, non-clinical expenditures equate to 20% of a health system’s annual revenue. With the challenges faced by systems today, their scarce and high-value resources are not typically focused on non-clinical spending; yet efficiencies in this area will help alleviate financial pressure and fund better patient care. While GPOs address between 5-to-20% of non-clinical spend, our solutions provide a comprehensive utility for all purchased goods and services. Critically, we are not paid by suppliers, nor do we take a piece of the savings. Our fees are only tied to the services we deliver, leaving our clients with unmatched return on investment.

Organizations across the Financial Services industry are faced with a slowing economy, tight labor supply and uncertain market conditions. While many companies have successfully weathered the pandemic, worked through a stretch of multiple quarters with surprisingly low provision expenses, and benefited from interest-driven earnings increases, cost savings to drive profit improvement remain a priority.

LogicSource provides procurement solutions that focus specifically on driving cost reductions against indirect goods and services. These indirect expenses typically equate to as much as 20% of a Financial Services organization’s revenue, and represent a significant opportunity for profit improvement. As businesses are faced with increasing pressure to modernize and compete with newer entrants to the market, efficiencies generated against indirect spending can be reinvested in organizational priorities such as digital capabilities, enabling organizations to service their customers better.

Typically, they focus their resources on buying what they sell to their customers.

They tend to focus less on buying well in other areas—the things that enable them to sell, better known as indirect goods and services. Things like:

• Marketing
• Packaging
• Information Technology
• Corporate Services
• Facilities
• Distribution & Logistics
• Store Development

Yet purchases in these areas — the things that enable you to sell — can represent up to 20% or more of total revenue for a business. That’s why there are substantial profit improvements to be had.

LogicSource is a service — a buying utility — encompassing all of the critical components of successful buying into a solution configurable to your needs.

This delivers material benefit across four critical areas. 

Economic Value

Profit enhancement:

7-15% average savings across all indirect expenditures

Price protection:

Over $85 billion in managed spending and pricing data, growing by billions each year

Procurement has a brand challenge; the broader business often does not understand its true value. Procurement professionals can address this challenge through better data and technology-enablement, but today’s solutions require scarce resources to implement and don’t bring additional data and insights successfully.

We see an opportunity to elevate the brand of procurement. After delivering hundreds of procurement engagements and thousands of sourcing events across billions of dollars of spend, we have developed a technology platform that enables the source-to-pay lifecycle, is informed by our data, and is supported by our services.

OneMarket. Built by practitioners, for practitioners.

To elevate the brand of procurement and bring buying to the boardroom.

OneMarket was built by our practitioners out of necessity after evaluating the market and finding challenges with today’s overly-complex, over-engineered, and overpriced solutions. Built to support our teams, it is used to deliver thousands of sourcing projects across hundreds of procurement engagements.