We are very proud of our track record of continuously delivering concrete bottom-line savings to our clients. For instance, we have optimized more than 300 categories, capturing substantial savings for our clients and we have trained more than 1000 purchasing officers through our integrated training programs. Through our extensive work we have developed certain perspectives and beliefs about purchasing that we want to share with you.
Start with a few high-potential categories and demonstrate success.
Clear roles and responsibilities & visible support more important than formal structure.
Set high aspirations for reducing life-cycle cost by pulling all key levers.
Established the full 2-3 year roll-out/business plan including detailed targets/resources, performance management systems and capability building plan.
Leverage your systems to the maximum but don’t expect improved IT structures to drive performance.
Apply focused project organization to begin with and strive for best practice organization later.
Focus on procurement often creates significant value for the company as 50-75% of the turnover normally is procured
A 20-30% TCO reduction is often possible and a high ambition pushes any approach, from traditional bargaining to a comprehensive TCO strategy
There are always means to rapidly capture substantial savings from purchasing activities
All salesmen want to increase the price and all purchasers want to reduce it. A rigorous, well-prepared and systematic approach is essential to maximize the results
Compliance to new agreements is required to generate bottom-line savings and does not get enough attention
IT systems provide help, but does not solve your problems
