Sourcing and Procurement is a critical business function that has significant and direct impact on bottom-line performance. Procurement spend can account for as much as 50 percent of an organization’s total annual expenditure. Savings attained through effective Sourcing and Procurement practices enable companies to reinvest in growth, personnel, facilities and equipment to drive improved performance. As a result, companies are challenging their procurement teams to play an increasingly important role in managing spend and optimizing end-to-end Sourcing and Procurement processes across the company.
Effective Sourcing and Procurement needs to consider an end-to end-perspective.
Although many companies have initiated Sourcing and Procurement improvement programs in the past, many continue to face significant challenges in attaining and sustaining procurement savings. Challenges include:
- Attaining accurate and complete visibility of spend across company
- Leveraging scale across diverse divisions and operating groups (purchasing power)
- Segmenting spend and applying the appropriate category management and sourcing strategy to each category (Centralized, Central-Led, Decentralized)
- Outlining clear ownership, accountability and fiscal responsibility around spend management
- Driving efficiency and effectiveness of procure-to-pay processes and clarity of roles and responsibilities
- Managing risks associated with poorly-written contracts
- Controlling spend and ensuring contract compliance across the organization
- Realizing benefits of past and future technology investments
- Building and retaining procurement skills and category expertise in strategic spend areas
To address these challenges, Centric has developed a holistic approach linking strategy, governance and execution to not only drive benefits, but also sustain and improve upon those over time.
A key tenet of our approach is balancing direct savings initiatives with building world-class and sustainable procurement capabilities within a company’s procurement processes, organizational structures and technology solutions. It is not enough to drive one-time savings. It is more important to establish effective capabilities within the procurement organization to achieve continual savings.
Centric’s Sourcing and Procurement service capabilities include:
- Sourcing and Procurement Transformation
- Spend Analysis and Opportunity Assessment
- Strategic Sourcing
- Procure to Pay Process Improvement
- Contract Management and Compliance
- Supplier Management and Partnering Programs
- Governance and Organization
- Technology Enablement
Sourcing and Procurement Transformation
We work with organizations to successfully transform sourcing and procurement departments to meet internal and external needs. Centric utilizes a proven phased approach to address the key components of this transformation, starting with an experienced-based assessment followed by the parallel delivery of savings and sustaining capabilities. We then work with our clients to develop and implement a roadmap to successfully streamline processes and improve business functions.
Spend Analysis and Opportunity Assessment
Centric works with clients to understand spend categories and identify strategies to reduce costs. Procurement covers a broad array of spend and subcategories with specific importance varying by industry and organization. Segmenting spend and applying the appropriate category management and sourcing strategy is critical to the success of a procurement organization.
Centric understands the challenges of strategic sourcing and helps companies align their strategies with the goals of the enterprise. We create flexible frameworks to respond faster in volatile market conditions. This flexibility plays a key role in a company’s ability to respond to customers’ evolving needs.
Procure to Pay Process Improvement
We understand that procurement transactions need to be fast, error-free and dependable. Centric shows organizations how to gain full visibility over the lifecycle of a transaction and make improvements for positive change. This is achieved by analyzing performance against best practices, discovering gaps and developing a roadmap to optimize the process.
Contract Management and Compliance
We help clients control spend and ensure contract compliance through development of measures and controlling activities. Centric utilizes an approach combining diverse industry backgrounds with current industry benchmarking data to identify costs savings and manage risk associated with poorly-written contracts.
Supplier Management and Partnering Programs
Three critical supply chain measures are quality, cost and time. Each of these measures can be improved through proper management of suppliers. Centric helps clients identify the proper type of supplier relationship for a purchase and develops recommendations to improve upon these measures.
Governance and Organization
A key attribute of any world-class procurement practice is a strong and user-friendly set of policies and procedures as well as the controls to monitor them. We use a spend-centric approach to help our clients define the appropriate structure (Centralized, De-Centralized, or Central-Led) for core spend categories. We help define roles and responsibilities of various stakeholder groups in the management of spend across the organization.
Centric works with clients to select, configure and implement software solutions to optimize their value chain. We gain a deep understanding of clients’ technology needs and develop a high-level application architecture along with supporting requirements. As a part of this architecture, we help clients realize the benefits of past and future technology investments (Sourcing Tools, Procure to Pay Solutions, Contract Management, etc).