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Procurement

Procurement, key to delivering on the strategic plan.

In many companies, the value that procurement adds to the strategic planning process is insufficient. However, if managed correctly, not only can this improve a company's profitability, but can contribute to driving the strategic plan of the organisation.

We support our clients in

Digitalization of Procurement
Control and management of risks along the Supply Chain and resiliency achievement
Reach sustainability across the Supply Chain
Optimization of Procurement and its contribution to the business
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We help achieve the optimal Procurement Strategy

We improve your performance by defining the changes in processes, organization, and technology to deliver on your organization's strategy.

Our approach focuses on 4 pillars:
  • Procurement Strategy
  • Visibility and Transparency
  • Processes adapted to the class and type of materials required
  • Sustainability and Digitalization
The main objective is to focus on adding value by giving greater relevance to Strategy and simplifying Operations.
0%
Spend improvement
0%
Working Capital improvement
(in the procurement area)
0%
Reduction of Operating Costs in Procurement

Challenges and Trends in Procurement

Procurement should be integral to a company's strategy. Correct management of the supply base and purchasing contributes to smooth and efficient operations, risk management, and innovation.

Depending on the industry, procurement can account for more than 60% of costs.
Risk management and supply continuity
The pandemic and subsequent disruptions have highlighted the essential role that effective risk management plays to ensure continuity of supply and, by extension, continuity of operations.

A key factor is to have better and faster access to data to make timely and informed decisions.

We design mechanisms that help you reduce risks and increase flexibility in the Supply Chain (local, regional, low-cost markets).
Sustainability, Social Responsibility
Innovation
Improved P&L and Balance sheet
Digital Transformation
Client focus

How we help our clients

We help you define how Supply Chain and Procurement can add the maximum value to your company, and help you define a Road Map to work towards that vision. We accompany you in the implementation of this vision, considering:

  • The contribution to other areas of the organization
  • The participation of suppliers
  • Make vs. Buy models
We are experts in defining the optimal strategy for procurement. How do we do this?

  • We identify the spend per category, supplier, region, business unit.
  • We define the right strategy to apply by category, considering the supply market.
  • We identify the strategy that achieves the best agreements and partnerships with strategic suppliers to maximise the impact in the business in terms of cost, technology, and operations.
  • We accompany you in the implementation of the negotiation strategy with the suppliers to realise maximum savings potential (7%-10%).
  • We maximise the value of collaborative design with your suppliers to contribute to your business objectives.
  • We help incorporate your company in Global Sourcing or Sourcing Board to achieve greater strength in numbers.

We believe in the use of technology to understand and mitigate the risks in your Supply Chain:

  • Build resiliency in your Supply Chain.
  • Detect possible risks before a disruption occurs to your Supply Chain.
  • Gain visibility beyond your front-line Tier 1 suppliers to discover hidden structural risks.

We pursue the achievement of transparency and control in Procurement through the processes.

We establish responsible practices in Procurement and Supply Chain aligned with the company's sustainability strategy.

We help to define the most appropriate procurement organization for the designed processes (central/local, responsibilities) and which categories to manage globally or locally.

We simplify operations through digitalization that can imply reduction in operating costs >30%. We implement specialized solutions that secure the assumption of the defined processes.

On the other hand, we apply methodologies such as:

  • Design to cost (cost reduction > 20%)
  • Working capital improvement (>20%)
  • Non-conformity costs recovery (>30%)

References

Automotive Sector

Supplier in the Automotive Sector

Create a Central Purchasing Area within a Group with strong inorganic growth, establishing processes and system support.

Analyse spend and supply markets, establish purchasing strategy by category, prioritise categories for negotiation and support in negotiations with an average improvement of >9%.

Energy Sector

Machine Manufacturer

Create a single Procurement organization and structure on a global level with definition of roles, responsibilities, and levels of centralisation / decentralisation in each region. Harmonise procurement processes in compliance with processes supported by SAP-Ariba (RFQ/RFP, awarding, contract management, eAuctions, eCatalogues, …).

Development of a plan for improvement in Costs and Working Capital.

Furniture & Decoration

Furniture Manufacturing Company

Analyse costs and the supplier market. Establish a Procurement strategy to follow for each category. Participate in the reconfiguration and negotiation with the supplier base leading to cost savings of 6% - 13%.

"Design to cost" based on the value analysis of the two most important product lines, leading to product cost reduction of 7%-15%.

Energy Sector

Company in the energy sector

High level design and implementation of supply policy. Standardization of references for materials and services.

Technology Partner

Any doubts? Ask us

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