Eight Savings Myths Debunked

Eight Savings Myths Debunked

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The three keys to procurement driven cost reduction and performance improvement

The three keys to procurement driven cost reduction and performance improvement

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Eight savings myths debunked

Eight savings myths debunked

Every year Grosvenor conducts a research study focusing on a specific area of procurement practice. These insights are used to inform our industry by aggregating real world experiences from Australian organisations and turn them into strategies that allow us to share knowledge and drive change within our own organisations.

Some surprising facts from our 2018 Procurement Study

Some surprising facts from our 2018 Procurement Study

Our 2018 procurement study “Eight savings myths debunked” was expected to stir the pot. It’s easy to allow assumptions and preconceived ideas about finding cost savings to influence where to look and what to expect.

Is there a pot of gold hidden in your procurement spend?

Is there a pot of gold hidden in your procurement spend?

Prioritising your procurement initiatives would be a lot easier if indicators existed that helped you determine where your most likely source of savings is going to come from.

Predicting cost savings in Property, ICT and Operations Sectors

Predicting cost savings in Property, ICT and Operations Sectors

In my last article, Is there a pot of gold hidden in your procurement spend?, I mentioned that one of the goals of our 2018 Procurement Study was to unlock a set of indicators that could be used to identify which categories, supplier and contracts are likely to yield the greatest opportunities to reduce spend.

Carrot or stick? 2017 Supplier Performance Study

Carrot or stick? 2017 Supplier Performance Study

On average procurement teams can gain an extra 29% performance from their suppliers with some simple changes. Our 2017 research study uncovered what suppliers would like to (but often can't) say to buyers to help them turn this around.

How to get started with sustainable procurement?

How to get started with sustainable procurement?

With spend in supply chains representing an average of 60% of an organisation’s budget, procurement strategy and processes have a profound ability to affect the social, environmental and economic sustainability of business at large. The power of procurement to contribute, both positively and negatively, to sustainable objectives has never been so widely recognised.

What Category Management tells us about the future of procurement

What Category Management tells us about the future of procurement

It’s been called a lot of things: strategic procurement, Category Management, strategic commissioning and customer centric procurement. What it really should be called is “good procurement practice”.

Are You A Savings Champion?

Are You A Savings Champion?

If you’re still doing things the old way - seeing your organisation as a series of silos - you’re missing out on plenty of opportunities to become a Savings Champion. Yes, the new procurement officer is an influencer, someone who is collaborative and makes use of all the tools.

Fantastic On Four Fronts

Fantastic On Four Fronts

Levers provide you with efficiencies that help move otherwise impossible loads with ease. As a user of these levers, it's important to be aware of what levers exist and when to use the right lever at the right time. You’d never use a crowbar, for example, to lift the lid on the Milo tin, just like you’d never try to shift that pile of bricks with a pair of tweezers.

Insights
Predicting cost savings in Property, ICT and Operations Sectors

Predicting cost savings in Property, ICT and Operations Sectors

In my last article, Is there a pot of gold hidden in your procurement spend?, I mentioned that one of the goals of our 2018 Procurement Study was to unlock a set of indicators that could be used to identify which categories, supplier and contracts are likely to yield the greatest opportunities to reduce spend.

Is there a pot of gold hidden in your procurement spend?

Is there a pot of gold hidden in your procurement spend?

Prioritising your procurement initiatives would be a lot easier if indicators existed that helped you determine where your most likely source of savings is going to come from.

Some surprising facts from our 2018 Procurement Study

Some surprising facts from our 2018 Procurement Study

Our 2018 procurement study “Eight savings myths debunked” was expected to stir the pot. It’s easy to allow assumptions and preconceived ideas about finding cost savings to influence where to look and what to expect.

Eight savings myths debunked

Eight savings myths debunked

Every year Grosvenor conducts a research study focusing on a specific area of procurement practice. These insights are used to inform our industry by aggregating real world experiences from Australian organisations and turn them into strategies that allow us to share knowledge and drive change within our own organisations.

Pay Less, Buy Cheaper, Buy Less and Buy Smarter: The 4 Spend Levers

Pay Less, Buy Cheaper, Buy Less and Buy Smarter: The 4 Spend Levers

When we think of generating savings, many of us automatically think of simply paying less for goods and services: whether we’re talking about tenders, volume aggregation or minimising contract leakage, this tried and tested method of using spending power to beat down prices has delivered significant savings over the years.

Modern Slavery Act – What have others implemented and what should I be doing now?

Modern Slavery Act – What have others implemented and what should I be doing now?

Grosvenor benchmarked 31 organisations across Australia and internationally to understand what controls were in place to address the risk of modern slavery within their supply chains. Through our research in June 2018, we discovered what was considered best practice and what organisations across the country can be doing now to address modern slavery risks within their supply chains.

Gut feelings and hard data

Gut feelings and hard data

We have gut feeling about plenty of things and maybe we think we know what works when it comes to incentivising behaviour. That’s because we know how we respond to sticks and carrots. But maybe not everyone responds as we do. Maybe different situations call for different approaches.

Building a relationship with your suppliers

Building a relationship with your suppliers

You’re a great team leader, right? Your staff respect you, and you them. Let’s look at the way you work with your staff and see how we can transfer your success there to success in the procurement field.

“Please return our calls!!!” – Candid comments from your suppliers…

“Please return our calls!!!” – Candid comments from your suppliers…

It never ceases to amaze me how important the simple things like returning a phone call or responding to email are to successful buyer / seller relationships. Funny how we expect a supplier to respond and even fall over themselves when we need them. But do we always show the same respect back? Is it ok not to just because we are the ones handing over the cash?

How changing buyer behaviour can double procurement savings

How changing buyer behaviour can double procurement savings

With their focus on keeping supplier costs down, Australasian Chief Procurement Officers are used to having their attention trained on the external market: but did you know you can almost double your savings by turning your attention inside the organisation too?

Why contract performance always disappoints the buyer

Why contract performance always disappoints the buyer

A recurring theme for many procurement staff is the erosion over time of the actual performance of their service contracts. Why is it that, despite the increasing use of robust tools and templates and the increasing proficiency of procurement staff, purchasers continue to feel dissatisfied with their contracts?

2016 Supplier Performance Benchmarks: How do you compare to Australia’s champions?

2016 Supplier Performance Benchmarks: How do you compare to Australia’s champions?

Do you ever wonder if your suppliers are performing as well as they could? Do you want to know how the leading organisations in Australia are getting more from their suppliers and getting better business outcomes?

5 ways to ensure procurement stays relevant

5 ways to ensure procurement stays relevant

Are you struggling to extract further savings through the application of spending consolidation and market testing? Are most of your spend categories now mature and behave predictably?

Category management: Why bother?

Category management: Why bother?

Does category management deliver benefits beyond just doing good procurement practice? Does it involve new techniques or practices? Or worse, is it just a fad word to make procurement practitioners or management consultants sound cutting edge?

The next wave of procurement savings

The next wave of procurement savings

A 2014 Australasian study has found that public sector organisations have at least twice as many procurement staff as private sector organisations. It is probably easy to surmise that this is a consequence of the high accountability, probity and compliance expectations of government. In effect, procurement processes in the public sector are more involved than in the private sector.

What suppliers think about your leadership

What suppliers think about your leadership

We know that your leadership style impacts supplier performance by 27%. Yet most organisations fly blind and don’t seek the feedback of suppliers on how to improve the way they lead.

Be SMART: How to define KPIs that drive better results

Be SMART: How to define KPIs that drive better results

Well thought out key performance indicators (KPIs) are a fundamental ingredient of performance management frameworks. But for many, developing a good KPI - one that actually drives behaviour to achieve results - is harder than it looks.

Are your procurement efforts on par with your peers?

Are your procurement efforts on par with your peers?

We developed an interactive tool for you to benchmark your procurement team’s efficiency and effectiveness with your peers. Want to know how your organisation compares? Give it a go! It’s free and only takes 5 minutes!

How is service sourcing different from product sourcing?

How is service sourcing different from product sourcing?

Services have become a significant part of Australia’s economy. However, businesses are not always sure how to align their purchasing function with this trend. This whitepaper explores differences between physical goods and services and how these influence the procurement function.

3 steps to take your organisation to supplier leadership excellence

3 steps to take your organisation to supplier leadership excellence

Much has been written about the relationship between leadership and staff performance. There’s no doubt that better leaders also produce better business outcomes. Yet, this kind of thinking is usually limited to staff management. It does not extend to the positive impact leadership might have on the performance of suppliers.

15 essential attributes successful contracts share

15 essential attributes successful contracts share

While every contract is unique, there are 15 attributes that all successful contracts share – regardless of their size, complexity or challenges.

3 steps to negotiate win-win outcomes for your contract

3 steps to negotiate win-win outcomes for your contract

Anyone who’s ever come into contact with a toddler will know that for most of us negotiation skills are learnt early. Unlike a toddler, adult negotiators understand that there are two sides to any negotiation and both negotiators want to have their needs met. Here’s how to negotiate the best outcomes for your contract, while keeping your supplier relationships intact.

Are your suppliers punishing you?

Are your suppliers punishing you?

Ever wished you were a fly on the wall when your suppliers meet to discuss your contract and the relationship they have with you? Trust me good or bad they have the conversations on many levels just as employees have conversations about their management.

10 tips to improve supplier relationships

10 tips to improve supplier relationships

Organisations successful in managing supply chains understand the value of managing effective relationships with their suppliers. These organisations have a knack of building trust and confidence with their suppliers which leads to knowledge sharing and the identification of improvement opportunities.

4 ‘carrots’ to incentivise Service Provider performance

4 ‘carrots’ to incentivise Service Provider performance

“Our Service Provider is useless,” is a quote we often hear when we get called in to fix a dysfunctional contract. To be honest, our clients often use more colourful language than that when they describe The Disapointment Gap!

Are you a savings champion?

Are you a savings champion?

In 2015, Grosvenor collaborated with PASA to survey hundreds of top procurement professionals in Australasia. Why? Because we wanted to identify the most effective savings tactics in use, and understand who was using them to the best effect. What we discovered might surprise you.

Best practice KPI development and reporting for stellar supplier outcomes

Best practice KPI development and reporting for stellar supplier outcomes

You may have heard the saying, ‘what gets measured gets done’. Use of Key Performance Indicators (KPIs) is the main way supplier performance is measured and the main mechanism for driving supplier behaviour. Here’s some tips on how to develop and measure best practice KPIs to encourage ongoing performance and exceptional outcomes from your suppliers.

2018 Procurement Study

Eight Savings Myths Debunked

Findings from our 2018 Procurement Study

We studied 159 organisations, asking them about their most successful procurement initiative in the last 12 months and benefits achieved.

The research is in:

  • Real data and insight from your peers
  • A summary of 8 procurement savings myths that you thought were true
  • As each myth is debunked, new insights are revealed by the data
  • You can have better performance and higher savings
  • Identify how you can predict which contract has the highest potential for additional savings

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