Diagnosis of procurement
We assess:
- organization of procurement department and its place in organizaational structure, its procedures and its purchase categorization
- organization of procurement processes with indication on roles and resposibilities as well as bottlenecks
- procurement expenses, that if not categorized are grouped in homogenous purchase categories. These expenses are benchmarked against market. We also assess cost cutting possibilities.
- what procurement strategies are used in specific purchase categories
A diagnosis results in recommendations on:
- Shaping procurement strategies for each category
- Cost cutting for purchase categories
- Optimization of procurement organization
Shaping procurement strategies for each category
This kind of project aims at creating an optimum procurement strategy for a purchase category.It usually includes the following:
- Development/reduction of suppliers base for a purchase category
- Implementation of new rules of cooperation with suppliers
- Consolidation of volume and suppliers
Cost-cutting for purchase category
4 Results' consultants conduct hand to hand with a client a standarizaton of stock, elaborate purchasing specification and choosing a supplier (even using reverse auctions and a method of choosing a supplier). THere is a knowledge transfer of procurement "know-how" so a client may reduce costs for additional categories on his own.
Optimization of procurement organization
This kind of project aims at implementation of a procurement department in a company. Among the areas of change are the following:
- Procurement area strategy and goals
- Place and role in organizational structure of a company
- Purchasing process including its roles and responsibilities as well as connections to other processes
- Purchase categorization
- Level of purchase centralization
- Implementation of competences: strategic procurement and operational purchase
- Continuous improvement of procurement procedures
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