Delivering profitability through sustainable improvements
5 Reasons Why Procurement can Deliver Sustainable Improvements to Profitability
Understanding the Requirement
Strong collaboration with other functions ensure you are buying what the business NEEDS and ensuring they are aligned to the what the business WANTS
Assessing supply opportunities and risks
Create transparency through a solid fact base for each category. Look at total cost of ownership to ensure you are measuring all the costs rather than piece price alone; low cost country sourcing may have long leadtimes, pro forma payments and expensive delivery costs!
Establishing commercial agreements to deliver sustainable benefit and reduce risk
Effective procurement is an ongoing process not a silver bullet! By creating structured agreements you enable sustainable benefits to monitor, measure and improve.
Identifying the Supply Base
It’s easy to stay with the same supplier year after year but have you evaluated if they are still right for your business? Spending time reviewing the market may lead to opportunities you had not considered – maybe a client could be a supplier!
Conducting an effective commercial selection process
One size does not fit all! There are many ways in which to approach the market so be careful to select the right one as well as applying demand management levers upfront.
How do we help you deliver sustainable profitability?
It’s necessary to implement a category management process for your company spend. To maximise the benefit, procurement should be involved from the very outset of an idea where the business will be spending money.
We analyse your spend to identify opportunities
Successful delivery is built on a clear understanding of your business and its supplier spend. In a free of charge diagnostic, we apply technology to analyse your supplier spend and identify opportunities to enhance profitability
We work with your team to prioritise opportunities
Once we analyse your spend we will be identify opportunities to reduce it. We will talk these through with you to identify which opportunities align to your business priorities. From here we work with your team to agree cost reduction plans
We provide rapid support to deliver savings
Based on your agreed priorities we will provide rapid procurement support to achieve savings. Our Bronze offering focuses on quick wins and bottom line impact but can enable you to move onto silver service to deliver medium and long term gains to your business