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Procurement Cost Reduction

Reduce your procurement costs with transparency, an optimal supplier portfolio and our comprehensive procurement consulting approach.

Procurement has huge hidden potential to reduce costs within your company and plays a central role in targeted value creation. As a procurement consultancy, we identify and unlock the potential in your procurement and provide you with full support to reduce your procurement costs. This support results in savings, an optimal supplier portfolio, efficient processes and well-established expertise for your employees regarding strategic and operational procurement.

What are our procurement consulting steps ?

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Performance check
The performance check is a standardized approach where we examine your procurement strategies, processes, organization and resources. We use the results to show you areas where there is potential for procurement cost reduction, improvement and what measures can be implemented to unlock it.
 
Benchmarking
Our benchmarking approach compares the collected data to the industry average and the best-in-class values of your competitors. Our many years of consulting experience in diverse industries allow us to provide benchmarks for your entire purchasing organization or for selected processes and resources. From this, we calculate the realistic potential for improvement within your company to significantly reduce your procurement costs and improve your procurement performance for the long term.
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Potential analysis
Our potential analysis comprises segmenting and analyzing the cost of all procurement goods, purchased products and services according to product groups. We analyze all product groups as required right down to item level in order to unlock all potential procurement savings.
We also consider the current procurement and market situation of your product groups and procurement goods. As a result, we will provide you with the specific details of what levers are suitable to achieve savings and what cost savings can be made.
 
Transparency with the spend cube

Creating a spend cube allows us to achieve full transparency in terms of your procurement and indicate where improvements are possible and what measures can be implemented to achieve them. This new overview of suppliers and responsibilities make procurement processes much faster and allow you to better understand how you can increase the efficiency of your procurement for the long term.

The spend cube consists of three dimensions and provides a comprehensive overview of your procurement:

  • Suppliers are identified and matched to the demand sub-segments of the product group structure.

  • Internal consumers/procurement managers are identified by means of interviews and matched to the demand sub-segments of the product group structure.

  • Demand segments are divided into direct and indirect procurement and organized into an accurate demand structure.

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Implementation

Our focus on implementation and consulting experience means that we get you results. Work with us and get the benefit of our implementation expertise gained from our consultants.

We will support you right up to the implementation of your new processes and/or until you have completed the transition to your new suppliers. The result of our projects are contracts with suppliers, which permanently secure your target savings and optimum quality standards.

We would be happy to advise you on the subject and support you through the implementation phase.

 

The results of procurement consulting:

  •  Sustainable, measurable procurement cost reduction – savings on the entire procurement      volume, increasing your profits.

  • Optimized procurement processes