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Accenture picks up yet another supply chain consultancy

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Accenture recently picked up Insight Sourcing in a deal that brings the number of supply chain consultancies it has bought since November to three.

The most notable piece of information about Insight Sourcing is that it has a massive presence in the private equity sector. The firm’s clients include 10 of the largest PE funds in North America, which represent massive revenue opportunities for Accenture. The reason is that PE funds don’t just buy supply chain consulting services for themselves but also for their portfolio companies, which are often multibillion-dollar firms with thousands of employees.

Insight Sourcing works with clients to figure out ways of reducing procurement costs. It can negotiate with suppliers to get better prices for software, business services such as package delivery and materials like metals. The firm can also optimizes so-called CapEx purchases, which are deals where a company buys an expensive piece of physical equipment such as a forklift. 

Insight Sourcing’s roughly 220 employees add will join Accenture’s Sourcing & Procurement business in the wake of the deal. They will work alongside colleagues from Impendi and The Shelby Group, the two other supply chain consultants Accenture has bought since last November.

In his statement on the news, Insight Sourcing founder Tom Beaty focused on a common reason small consultancies often choose to join a larger market player. He said that “as part of Accenture’s sourcing and procurement strategy, we will reach new levels of continued success with increased resources and opportunities.”