A mature procurement function is a strategic partner in supplier, risk, and cost management, decision making, and accelerating speed to value. Bringing a traditional, transactional procurement functions to that level of strategic partnership requires integrated, end-to-end supply chain solutions, including risk, cost, and supplier management; a mature procurement management operating system (PMOS); and market intelligence and technology.
As the #1 supply chain and operations firm in North America, we use Total Value Optimization (TVO)™ to raise the maturity of your procurement department, reduce costs, improve time-to-market, and deliver long-lasting bottom-line results.
How strategic is your procurement?
Transactional procurement deals with incumbent suppliers, sends out orders, and makes payments. As it grows in maturity, procurement becomes more strategic, engaging in fact-based negotiations with suppliers, tail spend management, and decisions driven by market insights. At full maturity, procurement is defined by its use and knowledge of:
- Total cost of ownership (TCO) methodologies
- Historical trends and analytics
- Structured supplier relationship management (SRM)
- Demand management
- Integration of sustainability
- Should-cost modeling
- Proactive market intelligence
- Index-linked pricing
- Value realization modeling
- Risk management
- Supply chain visibility.
How we accelerate procurement maturity
As specialists working across procurement, logistics, and operations, we are uniquely positioned to help clients accelerate measurable improvement across the buy-make-move supply chain to deliver the greatest value to customers and investors at the lowest cost to business. We work side-by-side with your team to ensure our data-based, structured changes are implemented and stick.
Our experts help achieve measurable results 3X faster than with traditional methods.
Step #1: Spend analysis and categorization
- Spend categorization and Pareto charts (suppliers, SKUs)
- Spend by location
- Demand forecast
- Current and historical pricing.
Step #2: Supplier review
- Assessment of top strategic supplier relationships
- Contract critique against best practice
- Supplier survey
Step #3: Procurement process assessment
- Process mapping of tactical and strategic procurement
- Critique of strategic and tactical procurement processes
- Procurement Management Operating System (PMOS)
Step #4: Leader and organization improvement (LOI)
- Organization assessment: owner, responsible, consult, inform (ORCI)
- Day in the life of (DILO) studies
- Metrics and goals review
Step #5: Pricing validation
- Market knowledge
- Price indexing
- Supplier incentive and rebate transparency
- “Should cost” modelling and market basket pricing
Step #6: Initiatives assessment and implementation roadmap
- Review and critique existing initiatives plan
- Historical initiatives effectiveness assessment
- Critique of existing financial evaluation mechanism
- Work plan, including time frames and resource requirements
Collaborative process to drive value
In our collaborative approach, we work side-by-side with your procurement department. For example, we set up a series of supplier relationship management events. SGS Maine Pointe begins by taking the lead in the first event, and gradually hands it over to your procurement team in subsequent events, as they see first-hand how to use the tools, processes, and negotiation tactics of a mature procurement function.
Our holistic approach focuses on delivering insights into:
- Data for decision making
- Total cost of ownership and category management
- Role of supplier conditioning
- Supplier/industry research
- Selecting suppliers for negotiation
- Supplier selection and implementation
- Supplier relationship management.
You need to know what is happening across your spend before you can determine what, if anything, is wrong and how to fix it.
We focus on
- Spend Analytics
- Preferred Supplier Compliance
- Transactional Analytics
- Buying Channel Compliance.
By developing trustworthy data, you drive savings and value across your spend; mitigate business risk; optimize the timing of payments and free up working capital; and better align your spending with your budget.
We focus on
- Category Analytics
- Bid Analytics
- Compliance Analytics
- Payables Analytics
- Consumption Analytics.
Supplier performance and risk
Your risks decrease when you know suppliers are performing according to contract and requirements and when you know
We focus on
- Supplier Risk Analysis
- Compliance Analytics
- Supplier Relationship Management.
Procurement case studies
|Company Description||Project Scope||Results|
Reduction in Direct Material Costs; Better Data Access; Reduction in Construction Costs & Time
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From rapid sprints for short-term gains to transformation for competitive advantage we are here to get you there.