IDENTIFYING AND TARGETING SAVINGS THAT INCREASE PROFITABILITY
Procura’s Spend Analysis & Opportunity Assessment will identify, evaluate and quantify opportunities for savings and procurement performance improvement so that you know exactly where you can reduce costs and by how much.
This is an essential tool for optimising the effectiveness of any cost improvement programme, providing the in-depth insights required to prioritise opportunities for procurement savings as well as a plan for their delivery.
We will undertake a comprehensive expenditure analysis, categorising and analysing your spend data to give you complete transparency of what you buy, where you buy from and how much you spend.
Our leading-edge spend analytics platform, ProIntell, provides complete visualisation, analytics and insight.
With this information, we’ll develop a business case, savings delivery plan and long-term procurement roadmap.
The process will take around four weeks to complete, is independent and will involve minimal business disruption. It will give you a clear picture of your procurement performance – and you’ll know exactly what savings can be made and the best way to deliver them.
We review each category of spend to create an accurate picture of the current situation, quantifying potential savings and how easily they can be achieved in order to develop a prioritised delivery plan.
Rapid, four step process
Step 1: Collating, categorising and analysing your spend data
We collate all available sources of spend data and then undertake a process of cleansing, consolidation and supply-market categorisation to provide complete transparency of spend.
Your data is uploaded into our spend analytics platform, ProIntell, to provide visualisation, analytics and insight.
Step 2: Understanding the commercial context
We take a structured category-by-category approach, talking to both procurement people and business stakeholders, to gain a deep understanding of your procurement profile, examining product specifications, order volumes and prices, along with suppliers and existing framework agreements, invoice and purchase order information.
Step 3: Assessing procurement capability
We understand your current level of procurement capability, whether it is undertaken in the business or by a dedicated procurement function, specifically around areas such as the way your buying processes are structured and how they work, the technology that’s used, and the responsibilities of those who are involved.
These insights allow us to assess how to best deliver the identified savings and provide recommendations on where to focus for improvement.
For more information on our Procurement Function Diagnostic click here [link to Procurement Function Diagnostic page]
Step 4: Report back: The blueprint for your journey to sustainable savings
We'll evaluate key spend areas to prioritise cost reduction opportunities by value and ease of implementation. After defining the implementation levers, as well as barriers and restrictions, these priority projects will be incorporated into a strategic plan that includes resource estimates and recommendations for organisational and process improvements to support long-term, sustainable savings.
The deliverable is a comprehensive report and executive presentation.
- Comprehensive spend analysis utilising ProIntell spend analysis platform
- Detailed category-by-category assessment; specs, frameworks, suppliers, volumes & prices
- Benchmarking of spend against best-in-class
- Identification and prioritisation of quantified savings opportunities
- Evaluation of current procurement performance
- Development of an actionable implementation plan
- Recommendations for sustainable improvements
Four Procurement KPI’s that every board should be measuring https://www.procuraconsulting.com/news/four-procurement-kpis-you-should-measure/
Procurement still under-leveraged in the US