The strategic sourcing and procurement process is a critical business function that has significant and direct impact on bottom-line performance and supply chain management solutions.
The strategic sourcing and procurement process is a critical business function that has a significant and direct impact on bottom-line performance and supply chain management solutions. Leading companies have proper strategic sourcing services and procurement teams to ensure their organizations maintain efficiency.
Procurement spending can account for as much as 50 percent of an organization’s total annual direct and indirect spending. Savings attained through an effective sourcing strategy and procurement processes enable companies to reinvest in growth, personnel, services, facilities, and equipment to drive improved performance.
As a result, companies are challenging their procurement teams to play an increasingly important role in spending and category management and optimizing end-to-end sourcing and procurement functions across their companies.
With the numerous external challenges that can affect your organization every day, tools and solutions to enable optimal remote work can help minimize or prevent disruption in your strategic sourcing and procurement team’s operations.
We provide you with the engineering services and solutions your procurement team needs to implement a great supply chain strategy in your sourcing processes. Through procurement and sourcing services, supply chain services can drive value and improve supplier relationships.
Holistic Sourcing and Procurement Approach
We have developed a holistic approach to sourcing and procurement that combines strategy, governance, and execution to drive benefits and improve solutions.
A key tenet of our strategy is balancing direct savings initiatives with building world-class, 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, solutions, and sourcing services within a procurement team to achieve continual savings and decrease direct and indirect spending.
Our Sourcing and Procurement Services capabilities include:
Sourcing and Procurement Transformation
We work with clients to successfully transform strategic sourcing and procurement departments to meet internal and external needs and to increase market intelligence.
We use a proven phased approach to address key components of sourcing services and the procurement transformation, starting with an experience-based assessment and followed by parallel delivery of savings and sustaining capabilities.
We then work with you to develop and implement a roadmap to successfully streamline solutions and improve the business process.
Spend Analysis and Opportunity Assessment
We work with our clients to understand spend categories and identify strategies to reduce costs.
Procurement services cover 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 cost reduction and procurement organization success.
Strategic Sourcing Services
We understand the challenges of strategic sourcing and procurement to help companies align their strategies with the goals of the enterprise.
We create flexible frameworks to respond faster in volatile market conditions.
This flexibility in sourcing and procurement operations plays a key role in a company’s market intelligence and ability to respond to the evolving needs of customers.
Procure To Pay Process Improvement
We understand that procurement transactions need to be fast, error-free, and dependable.
We show organizations how to gain full visibility over the lifecycle of a transaction and make procurement improvements for positive change.
This is achieved through services that analyze performance against best practices, discover gaps and develop a roadmap to optimize the procurement process and gain business value.
Contract Management and Compliance
We help clients control spending and ensure contract compliance through the development of measures and controlling activities.
Our strategic sourcing and procurement experts combine diverse industry backgrounds with current industry benchmarking data to identify cost 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 the proper management of suppliers.
We help clients identify the proper type of supplier relationship for purchase and develop recommendations and services to improve these measures.
Governance and Organization
A key attribute for world-class procurement operations is a strong and user-friendly set of policies and procedures as well as the controls to monitor them.
We use a spend-centric procurement approach to help our clients define the appropriate structure (centralized, decentralized, or central-led) for core spend categories.
Our sourcing and procurement experts also help define the roles and responsibilities of various stakeholder groups that manage spend across your organization.
We work with clients to select, configure and implement software solutions to optimize their value chain and increase their market intelligence.
Our experts gain a deep understanding of your technology needs and develop a high-level application architecture along with supporting requirements
As a part of this architecture, we help you realize the benefits of past and future technology investments – like sourcing services and tools, procure-to-pay solutions, and contract management.
Effective procurement and sourcing strategies need an end-to-end perspective
Although many companies have initiated sourcing services and procurement solutions and improvement programs in the past, many continue to face significant challenges in attaining and sustaining procurement savings. Challenges found when sustaining procurement savings include:
- Attaining accurate and complete visibility of spend across the company
- Leveraging scale across diverse divisions and operating groups (purchasing power)
- Segmenting spend and applying the appropriate category management and sourcing strategies to each category (centralized, central-led, decentralized)
- Outlining clear ownership, accountability and fiscal responsibility on spend management
- Driving efficiency and effectiveness of procure-to-pay processes and services as well as 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
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Our Operational Excellence Services
We collaborate with you to improve, transform or automate your operations and optimize key capabilities and value streams to achieve desired business outcomes.
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