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Procurement & Cost Management Excellence

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  • INTEGRATED

    INTEGRATED

    MOVE FROM A SUPPLY CHAIN TO A VALUE CHAIN APPROACH

  • BEING SHARP, FAST AND AGILE

    BEING SHARP, FAST AND AGILE

    ESSENTIAL TO SUCCEED
    AND OUTPERFORM COMPETITION

PROCUREMENT & COST MANAGEMENT EXCELLENCE

 

The role of Procurement & Cost Management in today’s business arena is ever more important, in a context where complexity, speed and uncertainty have increased significantly.

Building Procurement with a Value Generation approach, rather than price reduction, is on top of the agenda of any CPO to address internal and external challenges related to globalization, competition, uncertainty, and more. To enable a Value-based Procurement, in our view, key patterns are the following:

 

Andrea Montermini

EFESO Italy

 

Schedule a call

 

A value generation approach is crucial now that organizations are shifting from a Supply Chain to a Value Chain view, where Procurement is an integrated practice working with all the functions R&D, Supply Chain, Manufacturing and Sales & Marketing included.

 

Key Strategies to adopt to win

 

Integrate Procurement in the End2End Value Chain

Moving from a supply chain view to a full Value Chain view, in which procurement is a fully integrated practice, that works with all functions including R&D, supply chain, manufacturing and sales and marketing – to leverage value in cross-functional initiatives like Make or Buy, E2E loss reduction, complexity management.

 

Leverage Cost Management

Procurement can play a key role in Design to Value, Design to Cost and Should Cost initiatives, that typically allow CPO’s to exploit fact-based negotiations and fair-price evaluations, eroding waste in the collaboration with suppliers and helping taking decisions on the E2E lifecycle costs.

 

Exploit Digitalisation

In addition to traditional source-to-contract and order-to-pay applications, Procurement can now take advantage of strategic sourcing tools, spend analysis advanced analytics, sophisticated cost engineering tools, and much more.

 

Enhance Contract Management

As buyers are asked more and more to integrate with supply chain and ensure a 360° governance over suppliers. Proper attention to Contract Management enables companies to timely identify opportunities, reduce losses and manage risks proactively.

 

Build Flexibility and Resilience

After Covid-19 the importance of flexibility and resilience was made even more clear. Procurement can help building insourcing and reshoring options, developing alternative supply chains, and governing the risk of supplies.

 

Ensure Transparency

Visibility is a necessary enabler for effective decision making; applied to procurement Data and KPI helps capturing all dimensions for value generation such as cost reduction, innovation, level of service, sustainability, etc.

 

Benefit from a 4.0 Human Dynamics

Mindset and behaviour are critical for Procurement organizations and the contribution of each single person of the team makes the difference. Aligning desired dynamics to the digital era is of paramount importance also in the Procurement organization

 

The way we guide you

EFESO Consulting professionals are uniquely equipped to help you addressing such challenges. Our experts will help you to:

  • Understand your level of maturity and seize opportunities, both within the Procurement organization and across your integrated Value Chain - from R&D right through to your Customers
  • Shape the best sourcing and cost management strategies for your company
  • Developing and adopting best Contract Management practices and processes
  • Turn those strategies into practical actions for rapid results today, as well as sustainable results tomorrow
  • Redesign or align your organization, processes and systems to ensure the best balance between impact and sustainability
  • Enhance digital solutions able to accelerate your performances
  • Build your leading-edge capabilities

Procurement is fully integrated into our model for Value Chain Progression, so we can assure you of our quality support both in functional improvement and in End-2-End Value Chain optimization.

 

Contact us for more information

 

DELIVERING TANGIBLE RESULTS

 

Recent proof of how we partner with our clients to help them navigate business issues and achieve high value improvements.

 

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NEWS ABOUT PROCUREMENT & COST MANAGEMENT

 

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