Consulting Services & Training Modules for  Procurement

The role of procurement is continuously developing due to consistent changes that have affected the way of procuring, vendor-management and logistic. The role of procurement has notably changed during the last decade and has seen an increase of influence within any organization.  This change can be attributed to organizations now more than ever realizing the monetary / bottom line impact procurement with its interdisciplinary Koordinationskompetenz

This development leads to a transformation of procurement turning itself more and more into an In-House Consulting unit, which a stronger fingerprint on the success of the value chain along with HR, Finance, Legal, Production, Marketing and Sales. This does not mean that the classical procurement tools are not important anymore, it just shows the  need of a broader skillset which will have to filled by procurement , thus facing new challenges in a more and more globalized world. It’s being a good networker, with the high affinity of the (internal) customer needs, while finding the right equilibrium of suiting those needs combined with entrepreneurial governance.

That is where our expertise is best placed k in order to support this transition of our clients, improving interfaces between divisions and finding undiscovered ways of cost optimization.

Our main focus areas are:

Within porcurement organisation & management it is  all about the best organisational set up, as well as reputation and useage of your procurement unit within your company.

The optimal organizational set-up of your procurement

In the area cost optimization, we mainly focus on “best in class” sourcing practices and strategies, specialized projects and purchasing. Especially the trend of companies conducting global purchase initiatives in comparison to  producing the very item themselves  has seen increased significance during the last decade. . This increased procurement volume leads inevitably to a higher cost proportion management and results therefore in an increased P&L effect responsibility, particularly whenever savings can be achieved. In Vendor management we support you by categorizing and identifying your strategic vendors and how to best approach  them in favor of sustainable relationships, applying tactical methods like performance evaluation, etc. Contracts & Negotiations are drivers for quality and risk protection and therefore a key area within procurement.

 

Procurement organization & -management

The foundation of any good  procurement organization is an efficient, powerful set upas well as clear rules & responsibilities, visible for the entire organization.  To provide the procurement organisation the best possible start it needs to be introduced Combined with methods of best organizational alignment. We help you with the implementation or restructuring  so that ”your” procurement finds its place and appreciation in your company.

 

Potential consulting areas could be:

  • Building up/ restructuring of a local/global Procurement organisation
  • In- & outsourcing functions
  • Guidelines & processes
  • Procurement controlling (KPIs, Purchasing Compliance, etc.)
  • Internal acceptance of procurement and improving collaboration with other business units

 

Cost optimization

In order to achieve proper cost optimization we must identify all relevant cost  elements and -drivers  . This in so far crucial as for the total cost of ownership analysis, all cost will be analyzed that occur during the life cycle of purchased goods and services. Only if this is ensured, cost can be benchmarked globally, via sourcing projects or auctions/biddings. We are happy to support you on reviewing and optimizing your cost benchmark methods.

Potential consulting areas could be:

  • Total Cost of Ownership/ Lifecycle Analysis
  • Target Cost Analysis
  • Optimization of Sourcing projects/RFx (local/international), starting from how to develop a service level agreement (SLA), Demand/Supply Analysis till negotiations for best pricing and contracts
  • Purchasing tactics, like spot-buying, bidding/auction, rate cards etc.

 

Vendor Management

Our main focus is supporting you in implementing a sustainable approach on handling your vendor base. Categorizing and managing your vendors in a way that builds  a partnership, that supports your value chain in the best way possible. Perfromance measuring at this junction is as important as having the right vendor strategy. Especially when it comes to developing emergency plans in case a vendor is notable to supply.

 

Potential consulting areas could be:

  • Vendor base analsysis
  • Performance- & risk analysis methods
  • Vendor feedback talks and target alignment
  • Make or buy analysis
  • Development of emergency plans for critical vendors and those with high dependency
  • Moderating of vendor innovation workshops in order to optimize collaboration, logistic cost, value chain, etc.

 

Contract & Negotiations

Risk reduction along the value chain is only possible if all divisions cooperate smoothly by not engaging clients with multiple, varying  terms & conditions in comparison to those of the corresponding vendors. Apart from that is solid framework key to risk preventionor finding automatics for contract violations, like penalties for late or inadequate deliveries as an example. This is followedby  successful pricing negotiations (which we can handle as well) which represents the last hurdle to manage and overcome priorto  entering in a business relationship with the vendor.

 

Potential consulting areas could be:

  • Frame agreement & General purchasing conditions development (econm. View)
  • Analysis of service level agreements
  • Negotiation preparation & preparation of defending best contractual points