Introduction
Our annual Law Firm Procurement Survey serves as a point of reference for law firm leaders to advance procurement's role and benchmark against peers. The survey provides insights into trends, areas of focus, challenges, and top priorities for procurement.
Key 2021 findings focus on:
- Maturation of the procurement function;
- Improved due diligence for high-risk vendors;
- Greater focus on supplier diversity; and
- The emergence of sustainability programs.
Maturation of procurement functions
The maturation of law firm procurement functions is illustrated by investment in team growth and the expansion of the range of services procurement provides. The percentage of firms with at least four full-time procurement staff members rose from 72% in 2020 to 80% in 2021, highlighting the growing importance of experienced procurement professionals.
Improved due diligence for high-risk vendors
Law firms are increasingly focused on risk management and mitigation—especially related to operational, reputation, and financial risk posed by vendors that provide critical services.
The average number of firms' risk assessments increased sharply over the past year, from 197 in 2020 to 330 in 2021. That increase has helped firms identify more “high or critical risk” suppliers. The importance of that achievement is illustrated by the percentage of firms with 100 or more high/critical risk vendors, which increased from 50% to 92%.
Greater focus on supplier diversity
Supplier diversity is increasing in importance for law firms. 65% of respondents now have a supplier diversity program, up from just 43% of firms as recently as 2019. Firms are also starting to take more meaningful and proactive steps, with 31% establishing diversity goals and objectives.
Sustainability
Sustainability is also growing in importance. 38% of law firms have an environmental sustainability program in place and 30% of firms identified sustainability as a top priority for 2022.
The most common ways that procurement teams support their firms’ environmental sustainability efforts are by seeking out environmentally friendly products and services (63%) and by requesting vendor sustainability plans and reports (50%).
Survey participants
Respondents to this year’s survey included procurement leaders at more than 25 Am Law 100 and Global 100 law firms from the U.S., Canada, Europe, Middle East, and Asia.
To read the full report, download the PDF.
- Business operations
- Cost & spend management
- Operational performance
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