Procurement Cost Reduction
Create value via efficient sourcing and improved vendor management
Opportunities for procurement and inventory cost reduction exist in every organization! It’s only a question of whether you actually can identify them, how well you uncover them and how fast you can implement the changes that can deliver tangible savings.
The focus can be on multiple areas, with different goals – reduce cost of sourcing, drive down procurement overheads, enhance vendor relationships, increase spend visibility, improve vendor contract management or reduce inventory carrying costs.
Enventure enables clients to enhance their procurement efficiencies using a multi-stage process:
Phase 1 – Consulting:
- Audit and Gap Analysis: Assess current procurement practices, identify gaps, determine relevant sourcing strategies, processes and resources
- Roadmap Development: Build a comprehensive roadmap with short, mid and long-term goals to ensure significant progress in overall procurement practices
- Industry benchmarking: Compare data with industry averages and evaluate improvement opportunities against competition
- Risk Mitigation: Identify potential uncertainties and provide a strategy to manage the risk exposure, and minimize critical risks to the supply chain
Phase 2 – Implementation:
- Implement and monitor the roadmap: Coordinate with all stakeholders, keep track of defined milestones and ensure that the desired results are achieved. Also, execute steps to mitigate identified risks during the project implementation
- Process and Technology: A well-established data governance system with the right process and technology in place, helps build sustainability and enhances procurement cost efficiency across the supply chain.
- Improved procurement intelligence: Standardized inventory and vendor data provides insights to stocking and procurement strategy through accurate spend analytics
- Vendor optimization: Achieved by analyzing data points and spend patterns, combined with surveys of key stakeholders. The analysis and implementation will enable vendor consolidation and improved strategic sourcing initiatives
Phase 3 – On-going support:
- Inventory Data Governance: Our data governance solution enables you to ensure data quality does not get polluted, while adding new materials
- Vendor enablement program: Organize catalog content from vendors and enable them to transact and work electronically, which results in a well-oiled procurement process
- Material Master Data Maintenance: As materials go through changes, ensure that your system reflects the changes and carries updated information with our ongoing inventory refresh services
- Vendor Master Data Maintenance: Keep up with the changes to your supply base, whether it is related to ownership changes or changes in key executives and contact information
- Compliance risk management: Develop a comprehensive vendor compliance program, to ensure vendors understand compliance requirements and define measurable compliance parameters
While organizations strive to reduce Procurement Costs, their own internal procurement teams struggle with challenges such as:
- Limited bandwidth
- Lack of an external expert perspective
- Declining value of cost savings
To learn more about how Enventure can enable you to reduce procurement costs and improve bottom-lines for you, speak to one of our Supply Chain Consultants today!