Cost Control & Reduction | Process Improvement | Supplier Leadership

Utilities have undergone significant change in the past decade. Many transformed from government owned to private enterprises. This means Utilities are often caught in the middle: the industry faces the cost-pressures of the private sector and the compliance requirements of the public sector.

Cost control and reduction for Utilities often means obtaining a clear view of the end to end supply chain, optimising asset management and improving business planning processes. Sourcing is then just the next logical step to implement and realise the benefits. We also work with our Utilities clients to diagnose their internal processes, systems and people capabilities and guide them every step of their way to process improvement and better performance results through supplier leadership.

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 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.

We will also demonstrate how we have successfully worked with clients like Sydney Water, Icon Water and Ausgrid to deliver real change.

Client Stories

Resources

Is your Utility or procurement team facing the following challenges?

  • New to your position, looking for focus and some quick wins
  • Tasked with finding another round of cost savings
  • Trying to understand how procurement can deliver against the business strategy rather than being a reactive sourcing team
  • Struggling with procurement processes and systems that are just too complicated, time consuming, prone to errors
  • Not having the time to proactively fix the problems and are constantly expected to do more with less
  • Frustrated with contracts and suppliers that continually under-perform and give my team headaches

We help Utilities 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
  • Gain confidence and access deep expertise to tackle high stakes procurement in any category
  • Implement better practice contract and performance frameworks

We do this by:

  • Working collaboratively with you, your team and all stakeholders, from the start of the project to the successful implementation
  • Embedding our team of industry leading category experts into your project team for rapid upskilling of your procurement capabilities
  • Streamlining existing processes, policies and templates
  • Diagnosing problems with your contracts, systems, process and capabilities and implementing better practice
  • Benchmarking your procurement function with the leading Utilities 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.
  • Analyse your spend data with our proprietary tool SPAT, which is a machine learning tool trained on 50 million invoice data points
  • 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 underperforming 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.