Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Accounting and Financial Planning for Law FirmsLJN NewslettersNewsSections

Strategic Sourcing

BY Bret Baccus
January 29, 2010

Law firms face an ongoing challenge to reduce costs. Proactive firms can reduce their recurring costs for goods, equipment and services while maintaining quality and service levels by developing and implementing strategic sourcing programs. Strategic sourcing involves systematically examining spending as a whole and developing a holistic strategy to achieve greater savings than could be gained by “one off” cost-cutting measures. While strategic sourcing does not include payroll costs, enhancing the quality of non-payroll services will indirectly help payroll cost management.

The benefits of well-managed strategic sourcing can be substantial, positively impacting the bottom line and increasing competitive advantage. Huron Consulting Group's clients that engage in strategic sourcing have reduced their recurring costs 5%-15% within six months to a year, through addressing issues such as sourcing, demand management, consumption and contract compliance. For some large firms, these savings can add up to millions of dollars. Following are some commodity categories where significant, repeatable savings can be seen:

  • Courier;
  • Document storage;
  • Facilities;
  • Food services;
  • Ground transportation;
  • Insurance and benefits;
  • IT hardware;
  • IT software and services;
  • Office-related products;
  • Printing and publishing;
  • Reprographic services;
  • Subscription services;
  • Telecommunications;
  • Temporary labor and executive placement services; and
  • Travel and entertainment.

Because cost is part of the value chain, a firm's strategic sourcing program can also strengthen client relationships and marketing initiatives. Firms that can show clients they are taking active steps to control not only passed-through costs but also internal overhead costs, also demonstrate that they are efficiently run, cost-aware organizations. Value-driven corporate law departments appreciate firms with a similar respect for economy and efficiency.

Guiding Principles of Strategic Sourcing

This premium content is locked for Entertainment Law & Finance subscribers only

  • Stay current on the latest information, rulings, regulations, and trends
  • Includes practical, must-have information on copyrights, royalties, AI, and more
  • Tap into expert guidance from top entertainment lawyers and experts

For enterprise-wide or corporate acess, please contact Customer Service at [email protected] or 877-256-2473

Read These Next
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models Image

Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.

Hyperlinked Documents: The Latest e-Discovery Challenge Image

As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.

Identifying Your Practice's Differentiator Image

How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.

Risks and Ad Fraud Protection In Digital Advertising Image

The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.

Turning Business Development Plans Into Reality Image

This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.