Cost Control & Reduction | Process Improvement | Procurement Systems | Supplier Leadership

Procurement is a critical function for any business stuck in a global recession. The ability to drive cost down and move quickly is vital.

In doing so, 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.

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.

Case Studies

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
  • Procurement data is too poor for meaningful spend analysis
  • Our procurement systems are not fit for purpose for the public sector

We help our clients:

  • Identify the “First 100 days roadmap” for CPOs and Heads of Procurement
  • Identify which categories present the most likely cost savings and bang for buck 
  • Align the procurement function so that it delivers business objectives
  • 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
  • Implement better practice procurement, contract and performance frameworks
  • Improve existing procurement systems 
  • Guide teams when selecting and implementing new procurement systems

We do this by:

  • Using artificial intelligence to categorise spend and use our experience to predict where savings are possible
  • 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
  • Providing end to end change management support for procurement systems

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:

  • Use our artificial intelligence spend analysis tool SPAT to categorise your spend, even if all you have is low quality data
  • Show you where you can make savings using all 4 spend levers
  • Provide you with deep category insight to quickly realise cost saving opportunities (including in property, facilities management. professional services and ICT)
  • 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.

Procurement Systems

Chances are your function can be significantly improved through better procurement systems. We offer truly independent and system agnostic advice on how you get more of existing systems and how to drive customer adoption of new systems.

Our offer:

  • Clearly identify why your existing systems do not deliver the benefits and efficiencies they should. Then we help you implement the fixes
  • Use artificial intelligence to rapidly understand your spend even if the underlying data is poor
  • Assess your readiness for the implementation of a new procurement system and develop the business case
  • Support the change management that is required for any successful eProcurement system

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.

Insights & Resources

Dealing with supply risk: becoming a customer of choice

Risk Reduction remains at the top of the priority list for procurement teams all across Australia in September 2021 (refer to Figure 1). Our ongoing study into how more than 400 organisations responded to the COVID induced crisis consistently shows the importance that supply risk mitigation played. Probably not very surprising, but how exactly are these organisations dealing with the supply risk? What can you learn and adopt?

How do organisations go about creating savings post COVID?

Procurement professionals have four spend levers in their toolbox. But which ones were mainly used to combat the impact of the COVID-19 recession? Read on to find that it was the more traditional negotiations that procurement turned to in 2020 and how to generate further savings in 2021.

Why you are not happy with your eProcurement system

Often the answer to why your existing system is not firing from all cylinders can be found in our previous article. It’s likely that your implementation project skipped one of those lessons-learnt and you have consequently ended up in a situation where the uptake of your system is poor, end users complain about the usability, manual workarounds are in place, suppliers are unhappy and most of the benefits from your business case have gone out the window.

What can Finance expect of Procurement?

Well, it’s often been suggested that Finance and Procurement are at loggerheads about what is good for the organisation? Is it savings? Is it risk reduction? Is it ensuring that sustainability a core focus, or even commercial outcomes? All of the above?

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 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.