Overview

For all organisations any savings made on the initial purchase cost of bought in goods and services feed directly through to the bottom line, the services offered here focus upon a quick return on investment with the aim being to identify opportunities to reduce purchase spend and/or identify savings through the re-design of the purchasing process.

• Purchase Spend Review - Opportunity Assessment
• Purchasing Process Review & Re-design

Details

Purchase Spend Review - Opportunity Assessment

The length of this review will vary by scope of the spend under review, the size of organisation in question, and availability of spend data, though an elapsed time of 5-6 weeks is common.

A review typically consists of the following key activities:

• (Spend) Data gathering & validation
• Spend categorisation and analysis
• Supplier market review
• Constraints identification eg contract terms
• Opportunity assessment

At the end of a review the organisation will be given a report outlining areas of potential purchase spend saving (by category). This report will also include a high level plan outlining what the organisation must do to realise the identified savings.

Benefits

On a category by category basis identified savings of the order of 5-20%+ based upon current spend levels are usual. At this level of saving the review typically pays for itself within a few months.

Purchasing Process Review & Re-design

Here we are looking to improve the efficiency and effectiveness of an organisations Purchasing process.

This review can be done as a stand alone activity or in conjunction with a 'Purchase Spend Review - Opportunity Assessment'. If it is done on its own it typically takes 10-15 days.

It addresses:

• Mapping out the process
• Determining roles and responsibilities within the process
• How the Purchasing process interfaces with other key business processes, eg Accounts Payable
• Review against 'best practice'

Typically this review involves a number of structured interviews and facilitated workshop sessions involving all levels within an organisation.

From the review an organisation will be given an action plan on how they can improve their Purchasing.

Benefits

A successful outcome results in some form of 'financial' benefit, eg lower order processing costs or better supplier terms through an improved relationship.

Case Studies

• Raw Materials Strategic Sourcing
• Strategic Sourcing Review
• Purchasing Strategy Implementation
• Group Purchasing Review
• Purchasing Function Capability Assessment
• Interim Purchasing Director for a medium sized Acute NHS Trust
• Purchasing & Inventory Management Turnaround for a Medical Products Distributor
• Financial Services Strategic Sourcing / Category Management Review
• Interim Purchasing Director for a large Acute NHS Trust

For further information or to discuss specific opportunities please contact us

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