February 20, 2023
By:EmpoweringCPO Insights Team

Legal Services-Procurement Best Practices

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Legal service includes a rendering of any service in the conduct of any other proceedings before any court or other authority or tribunal and the giving of any advice on any legal matter. This report gives insights into the Legal Services industry, restructuring trends of the legal industry, Resistance to Involving the Procurement Department, the pricing structure of the legal industry, industry trends, and many other details on this category. Abstract
  • The entire legal spend can be classified as per the appropriate taxonomy, this can be the starting point for identifying and reviewing the right categories.
  • Internal pressure to reduce Legal costs and changed market dynamics has been leading to the involvement of the Procurement department to buy Legal services.
  • In 2020, almost every sector showed negative growth in demand; also Daily Demand per Lawyer and Collection Realization against Agreed Rates have decreased.
  • After the recession of 2008, companies started putting pressure on the legal department to better manage its spending by involving the procurement department.
  • GSK was able to achieve a cost saving of around US$23 Million through negotiations and improved services after involving the Procurement department.
  • Internal resistance can be countered by Procurement Departments’ knowledge of Industry trends, and best in class Compliance, and KPI Management Techniques.
  • There are three types of pricing structures; the trend is toward Fixed fees among corporations.
  • As the current market is overflowing with lawyers, hiring of talent could be more affordable; Industry trends favor selecting fewer larger law firms.
  • Large companies are capitalizing on these industry trends and taking initiatives in many areas to reduce legal costs.
  • When it comes to buying external legal services, procurement specialists focus on four key areas to achieve savings: Payless, Use less, Alternative source, and Eliminate.
  • Procurement can follow a structured and highly tailored approach to legal sourcing.
  • Legal services should be divided according to their Business Criticality and Spending, and the categories should be reviewed starting with less business-critical areas.
  • After populating Legal services in four quadrants, the below steps should be taken to advance a structured sourcing initiative.
  • Procurement can dive into the sub-categories to develop robust sourcing strategies based on business needs.
  • Clear Goals, evaluation of pricing options and focus on value over cost are some of the key success factors in holding a successful legal review.
  • Top tier UK bank was able to achieve a 13% cost reduction through Detailed Spend Analysis, Robust RFP process, and Strong Compliance Assurance Mechanisms
Table of Content
Content Slide No.
High-Level Spend Categorization 2
Reasons of Restructuring 3
Legal Market Overview 4
Restructuring Trends 5
GSK – Case Study 6
Resistance to Involve Procurement Department 7
Key Types of Law firms 8
Pricing Structure 9
Industry Trend 10
Reducing Legal Cost – Industry Trend 11
Approaches used for Legal Procurement 12
Legal Sourcing Approach 13
Value-Based Approach 14
Sourcing Strategies 16
Key Factors to do Legal Review 17
Case Study 18
If you think your scope is different than the dimensions and criteria presented in the Legal Services market research report, we can definitely fine-tune and add more suppliers for your customized need. Please feel free to share your specific requirements.

EmpoweringCPO is a team of experienced sourcing and procurement professionals with hands on experience of having worked with many fortune 500 companies. The company was founded in 2011 and since then has executed multiple strategic sourcing projects and have achieved average savings of 10-12% so far. In addition to Strategic Sourcing their other offerings are Spend Analysis, Procurement Intelligence, Procurement Analytics, Best Cost Country Sourcing, Procurement Outsourcing, Built Operate Transfer, Supplier Diversity, Sustainable Procurement, Tail Spend Management, Item Master Optimization, Collective Buying, Compliance Tracking and Managed Procurement Services.

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These are quite recently the absolute most normal inquiries we get inquired.

At EmpoweringCPO, we’re not just a procurement service provider; we’re your strategic ally. With a suite of offerings—from strategic sourcing to procurement analytics—we prioritize your organization’s unique needs, ensuring every procurement decision is smart, strategic, and sustainable.

Your aspirations drive us. Each service, whether it’s spend analysis or supplier risk management, is molded to resonate with your specific goals. Our commitment is to provide bespoke solutions that align with your vision and challenges.

We share your commitment to a greener future. Our sustainable procurement practices ensure not just cost efficiency, but also ecological responsibility. Together, we’ll make choices that benefit your organization and our planet.

Knowledge is the compass for strategic procurement. Leveraging procurement analytics, intelligence, and custom dashboards, we bring clarity and foresight into your procurement processes. With us, you’re not just making decisions; you’re crafting a vision.

Diversity is strength. Our supplier diversity program is designed to widen your horizons, connecting you with a rich tapestry of suppliers from varied backgrounds. It’s about procuring with inclusivity and purpose.

Our name speaks for our mission – empowering Chief Procurement Officers and their teams. We stand out through our personalized solutions, industry insights, and a relentless pursuit to optimize your procurement, ensuring it adds value beyond savings.

From ambitious startups to global frontrunners, our clientele spans various industries. They all share a vision: procuring with purpose and efficiency. They choose us because we don’t just offer services; we craft bespoke procurement experiences.

Savings matter, but not at the expense of value. Our strategy is rooted in understanding the intricacies of your business. Through keen analysis and leveraging our vast industry know-how, we identify avenues for savings that elevate, not diminish, your procurement’s quality.

Your trust is sacred. We harness state-of-the-art security protocols to ensure that your data isn’t just safe; it’s treated with the reverence it deserves. With EmpoweringCPO, your data is in trusted hands.

Beginning with us is straightforward, but the impact is transformative. Reach out through our Contact page or at sales@empoweringcpo.com, and let’s pave a path to procurement excellence together.

Every saving forecasted should translate into reality. Our savings compliance tracking closely monitors and validates realized savings against projections, ensuring transparency, accountability, and confidence in your procurement strategies.

Absolutely. We believe in the unique potential of each organization. Share your aspirations, and we’ll craft a procurement narrative that’s exclusively yours, resonating with your goals and ethos.

We’re with you. Beyond strategies, we impart knowledge. Dive into our workshops and training modules designed to kindle the procurement genius within your team.

Data is a goldmine when understood. With our procurement analytics, we turn your raw data into actionable insights, highlighting opportunities for cost savings, efficiency improvements, and strategic decision-making.

In a global marketplace, knowing where to source is as crucial as what to source. Our best cost country sourcing identifies optimal sourcing locations based on quality, cost, and risk, ensuring your global operations remain competitive and resilient.

Uncertainties demand vigilance. Our supplier risk management actively monitors, evaluates, and strategizes against potential supplier risks. From geopolitical changes to supply chain disruptions, we help you stay a step ahead, ensuring continuity and stability.

An optimized item master is foundational for efficient inventory management. We refine and standardize your item data, leading to accurate tracking, reduced redundancies, and a smoother procurement lifecycle.

Procurement intelligence goes beyond traditional market research. It offers tailored insights specific to procurement activities—supplier landscapes, pricing models, and risk assessments. With EmpoweringCPO, you get actionable intelligence designed to optimize and elevate your procurement decisions.

Our custom dashboards and tools offer a holistic view of your procurement operations at a glance. By integrating real-time data, performance metrics, and analytical insights, they empower your team to make informed, agile decisions, driving efficiency and value.

Consider us an extension of your team. Our managed procurement service handles the intricacies of your procurement processes, from sourcing to payment. By leveraging our expertise, you gain the freedom to focus on core business functions while enjoying enhanced procurement efficiency.

Supplier diversity enriches your supply chain by integrating businesses from varied backgrounds, ensuring inclusivity. This not only promotes innovation and resilience but also positions your organization as a forward-thinking, socially-responsible entity.

Savings projected after strategic sourcing project should mirror savings achieved and reaslized. Our savings compliance tracking ensures this by validating and monitoring realized savings against set benchmarks and projected savings, infusing transparency and confidence into your cost-saving endeavors.

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Compliance Management Tool

Compliance management is very critical as otherwise the procurement organization may run into a scenario where there is a huge gap between realized savings and reported savings. Many procurement functions estimate large savings numbers when contracts are signed. They also invest significant time and effort in negotiating contracts for necessary goods and services, only to have a third or more of their purchasing dollars flow outside those deals. Some of the obvious fall-outs of non-compliance and maverick purchases are:

  • Very high prices
  • Risk of losing out on volume discounts and rebates

As compared to the current contract that was finalized after the sourcing process, the tool helps in tracking:

  • Vendor Compliance
  • Price Compliance

The objective of this tool is to ensure that the orders are placed only with the vendors that were shortlisted after the sourcing process and at the same price that was agreed upon and negotiated during and after the strategic sourcing process.

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