Profit can be made at both ends of the business. With companies often spending up to 50% of income on externally supplied materials and services, procurement strategies require a measured approach. Our procurement consultants can identify and implement results through innovative procurement strategies, providing a real impact on profitability improvement.
The GSCMS Logistics procurement strategies process includes:
1. Data collection on existing procurement strategies
Preliminary data collection
Procurement consultants will identify stakeholders and their needs through workshops
Confirm major issues in existing procurement strategies
Procurement consultants to sign off with management
2. Analysis of procurement strategies
Review expenditure history and its components
By stakeholder
Requirements and usage patterns
Any unique requirements
Identify current procurement strategies and processes
Vendors
Categorise and identify critical goods and services
Identify relationship and any commercial arrangements
Procurement consultants to assess pricing structures
Benchmark procurement strategies against data base and industry standards
Assess current policy, procurement strategies and processes
Procurement consultants to get signoff by management
3. Develop new procurement strategies
Vendor meetings re pricing and leverage
Benchmarking
Provide options and test same
Assess impact of procurement strategies on all stakeholders
Put forward recommendations
Procurement consultants to get signoff by management
4. Implementation of procurement strategies
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