Published: November 04, 2010

Denali Group Predicts Expanded Value Through a Virtual Procurement Organization

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SAN FRANCISCO - (BUSINESS WIRE) - As part of its ongoing research into Procurement Innovation, Denali Group today released its third prediction for the future of Procurement: The Virtual Procurement Organization. The prediction is based on insights garnered from Denali Group's in-depth research with more than 50 Procurement and Supply Chain executives from a variety of Fortune 1000 corporations.

With fluctuating economic environments around the globe, Procurement organizations are being forced to use innovation to evolve into a mix of strategic in-house resources and virtual tactical resources. Procurement executives who can find a way to do more with less can leverage a variety of innovations that enable a high-functioning virtual organization.

The move towards the Virtual Procurement Organization is facilitated by a combination of innovations that optimize both strategic and tactical Procurement resources, including:

â€¢ Automation, Especially Cloud-Based Technology
â€¢ Formalized Procurement Center of Excellence (COE)
â€¢ Standardized Tools, Templates and Contracts
â€¢ Use of Supplier Value-Added Services
â€¢ Decentralized Transactional Procurement Activities
â€¢ Centralized Sourcing Execution
â€¢ Use of On-Demand Subject Matter Experts (SMEs)

"These exciting, rapidly-evolving technologies and methods are changing the face of the modern Procurement operation," said Denali Group managing partner John Evans. "Take for instance the benefits of Cloud-based technologies, which offer lower costs, increased scalability, increased flexibility, and faster deployment. These types of monumental changes not only accelerate cost savings, they also help grow top-line revenue and drive shareholder value."

More in-depth information on Virtual Procurement Organization predictions can be found in Denali Group's recently published Procurement Innovation Part III whitepaper: The Virtual Procurement Organization, which is available on the Denali Group website.

Procurement Innovation Predictions

Denali Group predicts additional areas of change for Procurement:

1. Procurement Will Greatly Expand the Methods and Channels by Which It Adds Value

2. Procurement Will Evolve Into a Mix of Strategic In-House and On-Demand Resources

3. Procurement Organizations Will Reshape Their Expectations and Talent Compensation Models

Details of these predictions are found in Denali Group's Procurement Innovation Whitepaper Series. Parts I and II of the series are available on the Denali Group Website:

- Procurement Innovation, Part I: What's Next on the CPO's Agenda?

- Procurement Innovation, Part II: Expanding Procurement's Value

Research Methodology

Denali Group's inaugural 2010 Procurement Innovation Research gathered 500+ data points through one-on-one interviews and in-depth research with more than 50 Procurement executives from Global 1000 corporations. Participants were from industries including: High Tech, Energy and Utilities, Finance and Insurance, Entertainment, Retail, and Pharmaceutical.

About Denali Group

Denali Group collaborates with supply chain and procurement professionals to deliver more value, faster and more efficiently. Denali Group's innovative solutions help Fortune 1000 companies transform organizational capabilities, improve execution efficiencies, increase spend under management, and accelerate time to savings. Founded in 1996, Denali Group services include:

Denali Consulting
- Supply chain consulting and transformation, strategic sourcing consulting, and logistics optimization

Denali Intelligence
- Subscription and custom supply market intelligence

Denali Recruiting & Staffing
- Supply chain recruiting and staffing

Denali Sourcing Services
- Managed sourcing execution and procurement outsourcing

For more information on Denali Group services, visit www.denaliusa.com - http://denaliusa.com or call 888-824-8866.