We provide a variety of services under the broad category of sourcing assessment or baseline/gap analysis. We evaluate and assess areas inclusive of processes, procedures, tools, techniques, strategies, reporting, metrics, spend, contracts, payables, systems, roles & responsibilities, organization, etc. With the knowledge gained from these analyses and our broad expertise we identify the opportunities that are optimal and achievable within your organization. Our focus is personal and unique; it’s about bridging the gap to bring your organization to the most optimal state.
Spend / Opportunity Analysis
Depending on objectives and current state of spend data we will break down spend into detailed sourcing categories, by supplier and by type and look for variances year on year. We can also look at the relationship of your spend to strategic objectives. We review your AP data, invoices, PO’s and contracts along with category detail inclusive of supplier information (current and potential), sourcing history, market conditions, dependencies, etc. We also take the time to understand your business and the operational nuances impacting each category as well as any potential changes in business requirements. We will identify opportunity based on financial, operational and procurement elements taking into account a variety of complexities.
Many companies turn to software solutions to conduct a spend analysis – in our experience we can more accurately and successfully identify the nuances and anomalies and appropriately identify the opportunities with our approach – it’s about more than numbers.
Organizational Design / Redesign
As procurement organizations are given more responsibility and all eyes turn to them to impact the bottom line the structure must evolve to one capable of impacting the entire organization. Procurement organizational structures are often built based on categories which naturally creates challenges and limitations as individuals want to grow. The same negotiation style doesn’t work across all commodities and with all internal business units. Nor does the same organizational alignment work successfully in every company.
An evolved structure entails more than an impact to organizational hierarchy – it involves tools, systems, people, processes – ensuring agility, productivity and profitability for your organization. Our assessment is ultimately about one thing – ensuring that the right good/service is delivered at the right time and place for the best possible price.
Procure to Pay
What happens in your company between procurement and payment? We will likely identify risk areas you are not even aware exist. Are your sourcing and payment processes still paper driven? Are you able to easily collect accurate historical spend data to make more intelligent buys? Is more of your spend off contract than you would prefer? Does this put you at risk? Are projects constantly over budget? Can invoices for the same good/service go through your approval process and be paid more than once? Can invoices be paid without verification of a contract or verification of receipt of the good/service? We have experience in identifying and implementing solutions for all these questions. Procurement is much more than just a sourcing effort. It also involves the development of a purchase order, verification of receipt of good/service, accurate invoice, payment… and of course ongoing contract and supplier management.
Business Process Improvement
Do individuals in your organization try to find ways to circumvent processes to get things done more quickly and efficiently? Do your processes slow you down? Do you hit your savings targets only to wonder where the money went? Do you lack consistency in approach - causing confusion for the supplier and internal team, ultimately driving cost up?
The move to centralized and strategic procurement organizations, along with changes in sourcing technologies has led companies to revise, reinvent and create business processes that enable them to leverage new methodologies. Appropriately developed foundations build profitability, agility and productivity into your business. We focus on ensuring policies and processes are in harmony with business priorities and corporate culture to achieve success.
We identify your risk areas and pitfalls and provide solutions that will work for your goals and objectives.
Contract Portfolio Review
Do you have a contract database, contract management system or other type of ‘tickler’ system? Lack of visibility to critical contract clauses and dates creates the potential for spend and leverage leakage as well as overall increased business risk. We can work within your database or help you create one. Our team has hands on business experience reviewing, writing, analyzing and negotiating thousands of contracts. This experience can prove to be a crucial asset. Are you still operating under dated contracts that are renewing year upon year without review? Are you signing off on vendor contracts without review? Have you identified your contractual risks? Or the risks of not having a contract? Have the business units executed similar agreements with the same vendor? Are you operating under the most favorable terms possible? Are you paying overages that you shouldn’t be?
Vendor contracts are designed to fit their needs. We know where the potholes are, where your risks are; we can quickly identify your risks and give you the knowledge and preparation you need for your next negotiation.