World-class procurement organizations can reduce a company's purchasing cost base by an average of 8%–12% and deliver additional annual savings of 2%–3%. We work closely with your team to identify and realize savings across all spend categories and procurement levers, and we build your organizational capabilities so you can sustain those gains over the long term.
Our four-step approach begins with budget and target-setting, including the establishment of quarterly and annual budgets, an annual procurement savings target, and periodic updates to quarterly budgets as needed.
Defining the operating plan entails setting category strategies and savings targets, and setting and revising Sourcing and Program calendars.
Executing the operating plan encompasses a review of category and supplier performance, a review of property implementation, and collecting customer feedback.
We work with you to ensure that corporate finance, program management, and strategic sourcing remain aligned and work together on a structured program to reach the desired end state. And we create the right metrics and dashboards so you can easily monitor the program at a high level and drill down as needed to explore action items and the key components of each metric.
The goal of a closed-loop savings process is straightforward: Make sure the savings captured by superior procurement practices show up on the P&L.
It begins with a diligent and robust management of individual spend reduction initiatives. Those savings are then aggregated and allocated to specific accounts and/or P&Ls. From there, savings are incorporated into financial planning and forecasts.
Successfully implementing such a program demands, among other things, rigorous reporting and clear visibility into savings. We work with you to ensure that heads of procurement, financial planning, and accounting, as well as budget owners, all see the same numbers. When savings are booked, they reduce budgets accordingly. That enables senior leaders to decide how to best use the savings, be it to close budget gaps, fund new investments or boost the bottom line.
Take your procurement function to an entirely new level of performance by building a range of discrete competencies that can support a world-class operating model.
We work with you and your team to develop the strategic and operational capabilities you need to manage supplier relationships, develop comprehensive category strategies, and master critical processes, including source-to-contract and procure-to-pay.
As companies continue to embrace digital capabilities across their operations, Chief Procurement Officers face two critical questions: How can they use digital to transform the procurement function? And, what can their function do to enable the company’s broader digital vision?
We see three trends influencing procurement’s digital future. The first is the increasing use of automation and Agile development to increase the speed, efficiency and accuracy of operational processes. The second is the deployment of key technologies to foster frictionless collaboration, improving supplier performance and accelerating cycle times. The third involves the use of digital tools to optimize procurement spend, forecasting, category management, and speed to market.