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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Findings from our 2019 Sustainable Procurement Report

Findings from our 2019 Sustainable Procurement Report

Grosvenor and Progressive Systems undertake regular research to understand the state of the procurement profession in Australia and New Zealand. This report details our findings from surveying 98 organisations about their efforts to implement sustainable practices in their procurement function.

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.

What’s the difference between suppliers and employees when it comes to motivating for high performance?

What’s the difference between suppliers and employees when it comes to motivating for high performance?

As it turns out - nothing! When you think about it, why would or should it be any different: in both situations we are talking about the motivation of human beings.

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.

Love me Tender? Not Likely!

Love me Tender? Not Likely!

Problems with suppliers create problems for your business. Consider those suppliers who can’t meet deadlines, are financially unstable, have staffing issues, can’t deliver the required quality of work or have weak compliance standards – the list of potential problems can run on and on.

Does size matter? – the truth revealed

Does size matter? – the truth revealed

You could be forgiven for thinking that suppliers provide better performance to their larger clients. Or those that are more profitable. Or those that represent growth opportunities. After all, it would make sense that a supplier does everything they could, go the extra mile for their bigger clients. Well actually the data gathered in our 2017 Procurement Study tells us that the contract value or the size of the supplier has little impact on the level of performance the buyer receives.

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.

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.

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?

Making the World a better place…Through sustainable procurement

Making the World a better place…Through sustainable procurement

Chances are, social responsibility is not the key driver for your organisation! It might be a nice-to-have, but your key driver is more likely to be super-pleasing your customers, maintaining a competitive-advantage or implementing public policies.

Sustainability through procurement – Spotlight on The Environment

Sustainability through procurement – Spotlight on The Environment

Environment is usually the very first thing that comes to mind when you hear the word ‘sustainability’. That’s because concerns for environmental protection and improvement have been promoted since the 1960s.

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.

PODCAST: The Procurement Corner with Steve Moore and Kris Wozniak

PODCAST: The Procurement Corner with Steve Moore and Kris Wozniak

For many organisations, a supplier relationship can seem more like a liability always demanding attention, than a valuable asset worthy of investment. So, what makes the difference between these two perceptions? Leadership.

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.

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.

Four common mistakes of overlooking contract pricing

Four common mistakes of overlooking contract pricing

When contracting for services, a lot of attention is focused on the initial contract cost. Hours of spreadsheet time is spent analysing and comparing tendered fees. Unfortunately, very little thought goes into how the ongoing service is paid for and how the ‘pricing model’ (not the initial tendered fee) determines value for money and delivers quality outcomes.

5 habits of highly effective supplier managers

5 habits of highly effective supplier managers

Hand on heart, do you think you’re giving your suppliers a similar level of attention and leadership as to your own team? It’s difficult, we get it. Internal demands can often seem more pressing - not least because you’re so much more easily accessible for the people who work with you onsite. But what if we told you that better leadership in supplier management is directly related to better business outcomes?

What’s the difference between suppliers and employees when it comes to motivating for high performance?

What’s the difference between suppliers and employees when it comes to motivating for high performance?

As it turns out - nothing! When you think about it, why would or should it be any different: in both situations we are talking about the motivation of human beings.

How to craft KPIs that boost Service Provider Performance

How to craft KPIs that boost Service Provider Performance

I’m not sure if my service contractor is really doing what they say they're doing.”, “How do I prove the success of my service contract?”, “What options do I have to enhance my service provider’s performance?” Sound familiar?

How to communicate with confidence to manage your contract

How to communicate with confidence to manage your contract

Effective communication is an essential skill for Contract Managers. Communicating well is all about making sure the right people have the right information at the right time. But how do you communicate confidently and consistently with your stakeholders to ensure the successful management of your contract and project performance? Answer the following four questions for a helpful starting point to developing your communications plan.

10 Questions To Assess Contract Management Capability

10 Questions To Assess Contract Management Capability

Procurement is finally getting the opportunity to become more involved in contract management. Here are 10 questions contract managers should ask themselves to baseline the current skill set and prioritise areas of improvement.

Want to spend less time worrying about poor supplier performance?

Want to spend less time worrying about poor supplier performance?

Supplier management is often something that gets thrown at you with little explanation of what is required, little to no training in how you monitor supplier performance or avoid the biggest traps. Spend less time worrying about poor performance and more time on making strategic decisions that truly deliver value for money for your organisation.

Winners are grinners: 3 ingredients for win-win supplier relationships

Winners are grinners: 3 ingredients for win-win supplier relationships

The culture of your contract will have been established early in the sourcing process. During the tender period, documentation and interactions with suppliers will have set the tone for the ongoing relationship during the contract management phase.

Indemnities versus Insurances: Do you understand the difference?

Indemnities versus Insurances: Do you understand the difference?

Indemnities and insurance both guard against financial losses and aim to restore a party to the financial status they held before the event occurred. However, it's important that Contract Managers understand the significant difference between the two to help protect their business.

Sustainability through procurement – Spotlight on Community

Sustainability through procurement – Spotlight on Community

Responsible procurement contributes to a sustainable world. It can also help your organisation build a stronger reputation, grow brand recognition, increase revenue and improve consumer confidence.

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.

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.

2018 Procurement Study

The Situtation Analysis

Following initial discussions, the Situation Analysis is how we start most engagements.

The Situation Analysis workshop, which typically runs for 3 hours, commences with an educational session on cutting edge procurement practices that drive real savings and marked supplier performance improvements

We will then perform a three step diagnosis:

  • Diagnostic 1: Understand your customers
  • Diagnostic 2: Understand your spend
  • Diagnostic 3: Understand current capabilities and maturity

On completion, we will provide you with a high-level 3-4-page Situation Analysis (we all love brevity) that aligns procurement’s strategic direction with your overall business strategy

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