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 and Fraya Lynn Hirschberg

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.

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
The Article 8 Opt In Image

The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.

Major Differences In UK, U.S. Copyright Laws Image

This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.

Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers Image

There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.

Strategy vs. Tactics: Two Sides of a Difficult Coin Image

With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.

Transfer Tax Implications on Real Property Leases Image

The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.