Realising procurement's competitive advantage

The simple fact that procured goods and services consist of 60% or more of an organisation’s cost base - a figure which continues to grow as companies outsource more services - makes it clear why senior purchasing professionals need to refresh their approach to delivering increased value to their organisation. With the help of PA Consulting Group and large-scale transformations, public and private sector procurements deliver more for less through our balance of:

• cost and risk reduction – implementing projects across key categories of spend to both reduce cost and at the same time manage supplier risk. PA realised €80m of cost reductions in material cost for Fiat Group within 12 months

• supplier collaboration – introducing powerful supplier management and development techniques for longer-term value creation. PA has worked with over 200 companies as part of the Manufacturing Advisory Service in the UK to develop supplier capability

• e-procurement – from running large scale complex eAuctions to automation across the purchase to pay and order to cash processes. PA provided strategic advice and project management for one of the largest eAuctions the Office of Government and Commerce (OGC) has ever run, saving over £10.5m

• business and procurement intelligence – rapidly finding real intelligence and improvement opportunities across diverse and often poor quality spend data without the need for expensive systems, complimented by robust modelling capabilities. PA has delivered over £7m of procurement savings for Sheffield City Council to date and are on target to hit total savings of £23.5m enabled by better use of procurement intelligence

• procurement organisation and change management – removing the critical people-related barriers (centrally and locally) of gaining adherence and buy-in to agreed processes. PA defined the operating model for a global FMCG company to enable the procurement team to double planned savings over 2 years.

To achieve competitive advantage from your purchasing power, in recessions and recoveries, contact us now.