We provide a range of professional services that help clients improve operational performance and profitability - from identifying and evaluating opportunities for savings, to implementing and managing category-specific cost reduction programmes. We work closely with your teams to embed best practice and ensure that procurement spend is optimised – and stays optimised.
We provide a range of specialist services which augment existing procurement functions and allow them to access specialist knowledge, expertise and experience.
Contract Audit and Profit Recovery
We provide a range of specialist audit and recovery services on a 100% success-based fee structure; no recovery, no fee.
Complex agreements and contracts with suppliers can result in a difference in what is due and what has been paid, particularly where structured rebates, over-riders, discounting structures and supplier-funding models are in place.
We review supplier agreements and actual transactions to ensure clients have paid only what they should have and received what they are due. We recover any difference from suppliers resulting in one-off repayments to our clients.
Profit recovery. A detailed review of clients’ accounts payables data to look for a range of errors across VAT, duplicates, credit notes, currency errors and overpayments. Our specialist auditors then recover payments from suppliers and provide recommendations to ensure any process weaknesses are resolved.
Agency labour review. Temporary labour contracts are fraught with potential errors and overcharges caused by Working Time Directive, Holiday and Statutory payments complicating agreed agency margins. High volumes of shifts, rates and recharges further complicate the commercial picture.
A detailed review of agency contracts and payments ensures clients pay only what is due and any overpayments are recovered.
Our energy specialists conduct deep analysis on utility supply agreements and performance review against each supply connection including;
Commercial Fleet Procurement
Procura’s Fleet Procurement service helps organisations optimise the whole-life-cost of a commercial fleet through;
- Lease vs. Buy
- Disaggregation of finance and vehicle costs – taking advantage of finance-only providers to separate out and optimise total lease costs
- Vehicle specification – ensuring appropriate specification of vehicle to suit usage/mileage profile
- Vehicle acquisition – procurement of the base vehicle is the most significant cost
- Vehicle cost breakdown – breaking out and defining the cost of each core component of the vehicle
- Component cost sourcing – professionally sourcing each of the individual cost component s such as bodybuild, chiller units, axel load devices
- Contract hire/spot rental costs
- Contract review and benchmarking
- Operational cost management – tyres, windscreens, oil, adBlue, call-out, maintenance & repair
- Fuel and fuel card programmes
- Telematics cost and functionality
- “Double-lifeing” of core components
- End of life and residual cost
Procura’s experienced team of local sourcing experts are able to support our clients in the identification, evaluation and implementation of best suppliers from emerging procurement markets.
Benefits of global sourcing include:
- Sourcing directly from suppliers
- Sustainable procurement savings and competitive advantage.
- Taking advantage of capacity in emerging markets
- Retaining the margins charged by agents and distributors.
Supplier Collaborative Cost Reduction
Supplier Collaborative Cost Reduction (SCCR) is an externally-facilitated, structured and managed process which takes the buyer and supplier through a measured and analytical process to identify, quantify and implement a wide-range of cost reduction techniques.
The SCCR toolkit includes:
- Value Analysis/Value Engineering
- Commodity Cost Management
- Total Cost of Ownership
- Complexity Reduction
- Buyer-supplier process and Supplier Cost-to-Serve optimisation
- Logistics optimisation
- Packaging optimisation
- Wastage reduction
- Vendor Managed Inventory
- Asset Sharing
- Tier 2/3 supplier sourcing
- Joint sourcing initiatives
- Reciprocal trading
Indirect spend refers to an organisation’s expenditure on goods and services which are not directly incorporated into the product or service delivered. Indirect spend can be thought of as all the supporting or overhead expenditure, whether corporate or factory related.
For most organisations, most spend will be on direct or core materials. However, indirect spend can form a surprisingly significant value but with spend spread over a wide scope of spend categories and suppliers, and with much indirect spend managed by non-commercial functions in an organisation, indirect spend is often over-looked. In retail, for example, indirect spend (or GNFR – goods not for resale) can account for one seventh of turnover.
Typical indirect spend categories include:
- Office supplies
- HR services
- Promotional products
- Fleet & Logistics
- Professional services
- Facilities management
- Maintenance contracts
- Maintenance spares and repair
- Postage and Courier
Quite rightly, most organisations will focus on their direct spend. Buying teams will typically manage strategic suppliers and core, direct spend categories. Indirect spend is often left to specialist departments to manage without the influence of professional procurement. As a result, indirect spend is under-leveraged and provides an excellent opportunity to deliver savings.
Procura’s Indirect Spend Procurement service delivers savings from the spend areas that in-house buying teams do not address.
Telecoms, data and voice spend has rapidly escalated and can form up to 20% of an annual IT budget as organisations embrace new technologies with data-hungry applications and a shift to mobile and home working.
Telecoms supply-markets are highly competitive with underlying cost drivers decreasing. The telecoms expenditure of organisations should be decreasing but for many the reverse is true; Average Rate Per User (ARPU) is increasing.
Ensuring your telecoms spend follows decreasing cost drivers requires telecoms procurement expertise, constant spend management and a regular and robust commercial interaction with the supply market.
Procura takes a unique approach to telecoms.
Firstly a “rear-view mirror” approach to existing contract and usage to ensure that an organisation has only paid for what it should have - often resulting in a refund. Secondly we help to competitively source future requirements to drive forward cost reduction.
- Telecoms contract audit and cost recovery
Our experts undertake a deep analysis, review and payment recovery on your existing telecoms contracts, including:
- Line audit
- Master contract
- Hardware fund management
- Standing charges and tariff checking
- VAT, double billing and overpayment cost recovery
- Performance audit and cost recovery: Cease orders, Circuit on/off, Correct frequency, Radial distance
- Telecoms supplier management, tender and sourcing
Our experts completely manage the specification, sourcing and tendering of landline, mobile and data telecoms requirements to deliver significant savings for clients, including:
- Supply-market analysis
- Multi-national agreements including Master Service Agreements
- Competitive tendering
- Negotiation and contracting
Procura have specialist IT software and hardware expertise in-house; consultants who are dedicated to this category, understand the supply market and are dealing with systems suppliers such as Oracle, SAP, Microsoft and Salesforce on an ongoing basis.
The scope of our expertise includes: enterprise software licencing, datacentres, telecoms, networking, hardware, software development and offshoring
Our IT services include:
- Demand management
- Contract review and licence renegotiation
- Support & maintenance contracting
- Supplier selection process management
- Supplier negotiation
Business Rent and Rates
Procura provide specialist rates, rent challenge and negotiation.
Business rates, often referred to as non-domestic rates, are a tax on businesses and other organisations that occupy commercial premises. This is an annual contribution made to the cost of services provided by local authorities and the emergency services. The charge that you pay is based upon the Rateable Value of your property which is currently assessed periodically by the Valuation Office Agency (VOA).
Following any Revaluation of commercial property, the VOA will publish the new Rateable Value for every commercial property across the country in a Rating List. Business rates are calculated against the Rateable Value, which represents the rental value of a property, at around 43 – 45% of the Rateable Value. Business rates are therefore one of the largest overheads any organisation will have to pay.
However, based upon comparable data and industry insight, many businesses could make substantial savings by appealing their current Rateable Value.
Business Travel Procurement
Technology is driving a paradigm shift in the dynamics of the travel supply-chain. Airlines, Hotels, Rail & Car Hire companies are developing new distribution strategies based on mobile solutions, directly targeting companies and their travellers. Travel Management Companies (TMCs) are rapidly evolving and providing new and innovative ways to support clients and help them manage travel spend. Whilst SaaS expense management solutions are expanding their scope and encroaching on to the traditional booking platforms. These drivers will have an increasingly significant impact on how travel is contracted, purchased, managed and controlled.
Amongst this rapidly changing environment, organisations must balance the complexities of an increasingly fragmented travel sector whilst maintaining cost control, maximising traveller well-being and optimising traveller productivity.
Whether your travel management is direct, partly or wholly outsourced, Procura’s bespoke data technology platform offers insights into both spend profile but as importantly, traveller behaviour and well-being.
Procura uses its proven four-phase model (Diagnostics, Sourcing, Change Management, Audit & Compliance) to deliver sustainable savings whilst ensuring policies are fit for purpose and aligned.
Whatever your objectives are, from compliance, to savings, to efficiency to traveller experience, Procura’s Business Travel diagnostic model provides an end-to-end assessment of your complete travel expenditure:
- Booking, fulfilment and reconciliation process assessment and optimisation
- Travel Policy review - aligning organisational objectives with traveller behaviour to drive compliance
- TMC Performance Audit - ongoing audit and spend analysis, evaluation against contracted terms and KPIs
Procura then help you put in place the optimum business travel management strategy and structure to effectively manage, control and optimise your overall business travel expenditure.
Business Insurance Procurement
Procura apply a unique and completely independent review of existing insurance programmes, our specialist team have helped organisations across all sectors to achieve savings on their business insurance premiums averaging 20% (on a like-for-like cover and service basis).
We aren't insurance brokers or insurers, we work solely for and answer only to our clients and our specialists are totally independent when negotiating with suppliers.
Our model offers a better way for organisations to purchase the insurance cover they need. We add value to your programme through improvements in cover, enhancements in service and additional cost improvements against the best possible terms your existing broker can deliver.
Procura’s services are focused on getting the best possible deal for our clients. Unlike brokers and insurers we work for and are answerable only to clients.
Our unique project processes enable our clients to secure better insurance protection, enhanced service and support and additional reductions in premium that simply aren't available through an open, competitive broker tender process.
Procura’s approach has been successfully applied in hundreds of projects involving businesses and organisations in all sectors of the economy. On a like-for-like cover and service basis it delivers on average, an additional 20% premium saving against the best terms otherwise available to our clients.