Cost Control & Reduction | Process Improvement | Supplier Leadership

Modern procurement extends well beyond the realm of cost reduction in an environment where the ability to move quickly and effectively is vital.

Effective procurement teams deliver against company objectives. Not procurement objectives.

These teams truly support the rest of the business through a deep understanding of business needs. They work to optimise the cost base and the performance across the whole value chain.

Being able to influence the business on how to use all available procurement levers, not just aggregation and tendering, is critical to drive the next wave of procurement savings and benefits for your business.

Conceptually there are three components to achieving procurement driven business performance improvement.

Cost control and reduction is certainly important but it is often given greater emphasis from a management perspective than the other two less visible components, process improvement and supplier leadership, that can deliver even better performance results.

We are happy to dive in wherever you need us but no matter what your specific requirements maybe as part of any prospective engagement we offer an initial no charge Situation Analysis.

In this consultation we analyse your current situation benchmarked against best practice and a roadmap of the options and activities that could be undertaken to improve your results.

Client Stories

Resources

Are you or your procurement team facing the following challenges?

  • New to your position, looking for focus and some quick wins
  • Frustrated with how procurement works in your business
  • Tasked with finding another round of cost savings
  • Seem to be continually putting out fires instead of focusing on the future
  • Underwhelmed with the performance of some or all of your suppliers
  • Unsure if you are receiving value, including innovation compared to your competitors

We help businesses and their teams:

  • Analyse quickly where they stand in terms of procurement capability, systems and gaps to best practice
  • Align the procurement function so that it delivers business objectives
  • Identify which categories present the most likely cost savings and bang for buck
  • Find the space to think strategically and add real value to your business
  • Become highly effective at maximising the value from contracts and driving expected behaviours from suppliers
  • Fix existing dysfunctional contracts and relationships with suppliers
  • Elevate the standing of the role of procurement within the organisation
  • Implement better practice contract and performance frameworks

We do this by:

  • Embedding our team of industry leading category experts into your project team for rapid upskilling of your procurement capabilities
  • Diagnosing problems with your contracts, systems, process and capabilities and implementing better practice
  • Benchmarking your procurement function with the leading 150 organisations in Australasia
  • Training and coaching your team and transferring knowledge across the whole contract lifecycle

Our Consulting Service

Cost Control and Reduction

When it comes to cost control and reduction there is more than one way to skin the cat. Procurement teams actually have 4 levers at their disposal - Pay Less, Buy Cheaper, Buy Less, Buy Smarter.

Our team will:

  • Help you identify and apply a 4 levers strategy to your procurement function and buying process.
  • Provide you with deep category insight that quickly identifies cost saving opportunities (including in travel, property, professional services and cleaning/FM)
  • Give you on demand access to our resources to supplement your own team.

Process Improvement

Transforming the way procurement is done often receives internal resistance particularly if to date it has been ineffectual or an impediment to getting things done.

Our team will:

  • Assess the procurement capabilities of people, systems and processes.
  • Diagnose exactly where the pain is, what is causing it and then implement the changes with you.
  • Give you the time to focus on the important not only the urgent through improved planning and better category management.
  • Streamline procurement policies, processes, guidelines and templates.
  • Coach and tailor training across the whole contract lifecycle.

Supplier Leadership

More often than not service providers disappoint. Managers end up spending most of their time putting out fires and dealing with poor performance rather than making strategic decisions.

We help you:

  • Introduce a contract management and supplier relationship management framework to drive the required behaviour from your suppliers.
  • Determine if your contracts are on track and where they are under-performing and get them up to scratch through our contract health checks.
  • Fix a dysfunctional contract or relationship.

Where to Start?
THE SITUATION 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’ll also discuss in broad terms projects we’ve undertaken with organisations similar to yours and how we have helped them achieve their goals.

We will then perform a three step diagnosis:

Diagnostic 1: Understand your customers

  1. What are the business objectives outlined in your organisations business plan?
  2. How can procurement deliver against each business objective?

Diagnostic 2: Understand your spend

  1. Based on your general ledger data we will run high level spend analysis to understand who you are spending money with, how much, when and on what.
  2. We will then identify where your biggest savings opportunities are.

Diagnostic 3: Understand current capabilities and maturity

  1. We will ask a series of questions from our better practice comparator to understand the capability of your procurement team, systems and processes.
  2. We then identify how your function can deliver against the opportunities identified during the Situation Analysis.

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. It will outline the short and long-term steps you need to take to ensure your procurement function is best practice and the right fit for your organisation now and into the future.

The only provisos for this workshop (which is no charge) are:

  • All attendees read the ‘Procurement Manifesto’
  • Your CFO, COO and CPO are present.
  • Our travel costs are covered if applicable

If you’d like more information or would like to undertake a Situation Analysis complete the form and we’ll be in contact shortly.