Procurement Cost Reduction

“Create value via efficient sourcing and improved supplier management”

Opportunities for procurement 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 deliver tangible savings.

The focus can be on multiple areas, with different goals – decrease purchase prices, drive down procurement overheads, improve supplier terms and reduce inventory carrying costs.

Enventure enables clients to meet these goals by leveraging:

  • Improved Procurement Intelligence
  • Supplier Optimization
  • Process and Technology
  1. Improved Procurement Intelligence
  2. Data is the backbone for procurement and supply chain intelligence and can provide very deep insights into how to optimize procurement and supply chain. Most organizations struggle with getting basic spend analytics in place, apart from being challenged with optimizing procurement. Most of these issues stem from inconsistent and inaccurate information on what commodities they buy, how much they stock, the value of their inventory, etc. – none of which are not benchmarked to ‘ideal levels’ either. Enventure’s approach is multipronged, starting out with an audit and gap analysis, followed by implementing changes to the materials master that can enable a company to realize direct savings.
  3. Supplier Optimization
  4. Organizations struggle with rising procurement costs challenges that originate from the supplier, and Enventure understands the intricacies of these challenges across industries. Our analysis across data points, combined with surveys across client stakeholder groups, creates an implementation roadmap for the client. The analysis and implementation will address – obsolete vs active cataloguers, reviewing supplier terms, purchase requirements, vendor consolidation. Our analysis also details purchase patterns from agreed cataloguers, recommend optimal purchase of products from specific brands or types of products, helps avoid duplicates, and identify higher orders from one/few suppliers increases the discounts.
  5. Process and Technology
  6. Organizations often do not have a well-established and written down data governance system, which over time increases procurement costs substantially. Some companies make efforts to create a unified data standard, but then fail to sustain that on an ongoing basis. Over the last 2 decades, Enventure has been working with clients organizations to put in systems and technology in place, that creates a golden data standard and maintains the data quality on an ongoing basis. With the end goal of optimizing the supply chain and making procurement very lean, we work with indirect material data across industries – Energy, Automotive, Food, Medical, Healthcare, Oil & Gas, Manufacturing, Retail, and Distribution sectors.

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-line, speak to one of our Supply Chain Consultants today!

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