Procurement Strategy: Delivering costs savings & efficiencies through effective procurement
Do you need to achieve a business advantage through more effective procurement? eXceeding can help you design a purchasing strategy that meets your business needs.
The objective - If cost reduction is your focus, there are many areas you can explore. From the cost of capital through to staffing, production processes and inventory management - the chances are that most organisations can achieve immediate savings in their bought-in goods and services.
With the rationale to outsource non-core services increasingly compelling, many organisations are finding that strategic, well-managed procurement is a sure route to securing significant cost savings and efficiencies. However, whilst the opportunities are significant, so are the risks, if it is not run well.
Effective procurement is a complex activity, which needs the devotion of expertise, time and resources to deliver value through to your bottom line. Procurement should not just tick a ‘compliance’ box. Instead, it should be ready to fulfil a strategically important role in the business. Is your procurement function ready to step up to this challenge?
The challenge – defining your strategy - To understand how effective your procurement is, you need to look at how it supports your overall organisational strategy. What are your top-most objectives? Are they focused on bringing new products or services to the market, by rationalising your staff or premises, increasing exports - or some other key priority? How can you support these objectives with more effective procurement?
There is no short, definitive list of considerations that ought to be included within your procurement strategy. Priorities change over time and strategies must be reviewed and revised to reflect changes in circumstance and focus. So what you choose to consider will be particular to you. You may need to review how you make procurement decisions and who is authorised to make those commitments; how to maximise value through the use of competitive tendering and contracts; your processes for dealing with suppliers – or wider issues such as compliance, corporate & social responsibility, too.
The solution - Whatever your priorities, eXceeding can help you develop measurable targets that define success. Our expertise spans large scale procurement engagements, providing organisations in both the private and public sectors with the necessary business intelligence to apply knowledge-based decision making to the purchasing process.
We review, develop, design and implement key category spend and procurement strategies for our clients. Our non-emotional and auditable processes deliver real savings and will stand up to any level of scrutiny. So whether you have a procurement approach that needs reviewing and improving, or have nothing formalised to date, we can support you with best practice guidance and advice.
Our clients benefit from the following:
- Business intelligence: resulting in cost savings/service enhancement. The majority of our clients benefit from savings of over 30%.
- Risk reduction: through the identification or re-evaluation of the needs of the business, we are able to develop an appropriate procurement strategy, driving optimum service solutions.
- Supplier selection: suppliers are benchmarked and evaluated to ensure the selection of the most appropriate partners, based on capability, spend category, long-term value and innovation.
- Procurement processes: we can help you develop a process built around robust framework agreements and focused on performance management and best value.
If you need help with a single process, such as an expenditure analysis or reviewing your operating structure …or if you need a complete overhaul of your current approach, every engagement is tailor-made to meet your exact requirements.
Find out more - Simply download our factsheet, which highlights factors to be considered when reviewing your procurement strategy. We’ve included some simple, practical guidance notes to help you work through your requirements. And of course, we’ll be happy to discuss it further with you.
Why eXceeding? - We have assisted both small and large companies that are setting up a procurement function for the first time. Also, we help experienced organisations looking to improve the efficiency and effectiveness of their procurement activity. As our customer testimonials demonstrate, we have consistently achieved our aim, to ensure that our clients are able to increase the efficiency of their procurement and achiueve a better outcome for their businesses.