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  • Procurement Management

    Procurement Management

    Unleash value from your external costs and supplier network

  • Procurement Management

    Procurement Management

    Unleash value from your external costs and supplier network

Procurement Management

As we move towards a world with a significant increase in complexity, speed and uncertainty, it is clear that Procurement’s role has changed, becoming far more strategic and disruptive than ever before. Today, Procurement must focus on delivering value across multiple dimensions, and not just purchase price— innovation, long-term cost reduction, supplier improvement, sustainability, resilience, and risk mitigation. Transforming Procurement organizations towards a value creation approach, beyond just price reduction, is top of any Chief Procurement Officer’s agenda. Doing so calls for CPOs to address both internal and external challenges relating to global market dynamics, competition, digitalization, uncertainty, and more. We can help CPOs to achieve this.

In our experience, transitioning towards value-based procurement calls for organizations to focus on key transformation building-blocks:

  • A vision of what value-based Procurement means for the organization
  • An evolved Procurement operating model
  • Innovative strategies for commodities and relationships
  • Agile, digitalized processes to manage the Procurement life cycle and integrate supply chains
  • Capabilities to embed and sustain the change.

 

Andrea Montermini

Vice President & Global Lead of the Procurement Practice

 

Schedule a call

 

Where we can help you

Whatever your challenges we will find a tailored approach with you

 

Integrating Procurement in the End-to-End Value Chain

 

 

Moving from a supply chain view to a full Value Chain view—in which procurement is a fully integrated cross-functional practice—calls for working with functions such as R&D, supply chain, manufacturing, and sales and marketing, in order to create and leverage value through cross-functional initiatives such as Make vs. Buy, end-to-end loss reduction, and complexity management.

 

Driving Innovation

 

 

Today’s business challenges require companies to adopt ‘open innovation’ models, with Procurement leveraging its intelligence on supply markets participate upstream in innovation processes, implementing innovation ecosystems, and pulling innovation opportunities from suppliers.

 

Leveraging Cost Management

 

 

Procurement can play a key role in Design-to-Value, Design-to-Cost and Should-Cost initiatives, which typically allow CPOs to exploit fact-based negotiations and fair-price evaluations to drive value and eliminate waste through data-informed collaboration with suppliers.

 

Making the Best Use of Digitalization

 

 

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.

 

Enhancing Contract Management

 

 

Buyers are increasingly asked to take a more integrated approach to the supply chain,and ensure 360° governance of suppliers. Proper attention to contract management enables companies to identify opportunities, reduce losses, and proactively manage risks.

 

Ensuring Transparency

 

 

Visibility is a key enabler of effective decision making; by making transparently visible procurement data and KPIs, Procurement helps to capture relevant aspects of value generation such as cost reduction, innovation, level of service, and sustainability.

 

Building Flexibility and Resilience

 

 

The Covid-19 pandemic—especially in its early months—highlighted the importance of flexibility and resilience to Procurement, and to supply chains. Procurement can help building flexibility and resilience through pursuing insourcing and reshoring options, developing alternative supply chains, and proactively working to minimize supplier risk.

 

The EFESO touch

A tailored approach to meet your needs

 

We help organizations to unlock new sources of value, and gain a competitive advantage through our unique approach, which takes an end-to-end value chain perspective – all the way from suppliers to customers. We call it the Procurement and Cost Management Sustainable Progression, and it is based on our belief that value chains add more value when all functions and processes are working in a seamless manner.

Our clients have optimized their supplier management and external spend, generated an optimum level of value for their business, eradicated losses, leveraged suppliers’ innovation capabilities, and managed risks. EFESO’s value-based procurement model takes a holistic and pragmatic approach throughout the Procurement lifecycle, stretching from strategy to sustainable execution. It is a model that has a real and tangible impact on your business, delivering results both today and tomorrow.

Our procurement experts are uniquely equipped to help you address your procurement and cost challenges. They will help you to understand your level of procurement maturity, and seize opportunities—both within the Procurement organization and across your integrated Value Chain—from R&D right through to your end-customers. Procurement is fully integrated into our Value Chain Progression model, so we can assure you the highest level of our quality support both in functional improvement and in end-to-end Value Chain optimization.

 

Some of the tangible results we deliver for Clients

10% - 20%

decrease in

commodity spend

 

0% - 30%

increase in

Cost Reduction on Products

 

5% - 15%

increase in

Supply Chain loss reduction

 

Major

decrease in

Carbon-Neutrality Target

 

Our Services

Our service lines in Procurement Management will help you to maximize the speed and efficiency of your procurement transformation.

 

  • We help you to define a new operating model for your Procurement function, so better enabling it to address the value-generation challenges ahead encompassing vision, organization, business integration, strategy, processes, digitalization, and people.

  • We help you to establish medium-range evolutionary plans covering a wide portfolio of improvement levers, focusing on spend management, demand management, supply and supplier management, and value-chain management. We help you to shape the fit-to-win strategies for different commodities, each aligned to your overall business strategy.

  • We help you to integrate your ESG strategy and targets into your Procurement mission, plans and processes. We support the shaping and integration of new solutions, aiming to improve the sustainability performance of your suppliers and supply chains.

  • We help you to identify the most valuable digitalization opportunities open to you, right through the entire Procurement lifecycle, unlocking augmented insight, process acceleration and efficiency, and the most advanced digital solutions from our ecosystem.

  • We help you to develop organizational capabilities and processes to generate recurring savings and enhance the performance impact of the supplier base. We can support the implementation through structured yet agile cost-reduction sprints.

  • We work in tandem with you to engage key suppliers in collaborative processes in order to close the gap with target costs for new or existing products. We leverage cost-engineering solutions to implement step-changes in cost visibility and fair-price evaluations.

  • We support you in leveraging advanced capabilities in order to optimize and manage purchase contracts throughout their entire lifecycle (from RFQ to negotiations, and through contract execution and close-out), right up until litigation, if and when necessary.

  • We help move Procurement to the center of end-to-end value chain synchronization programs, in order to go beyond functional excellence and ascend towards the capabilities of top supply chains worldwide. Inter alia, we can also help our clients to improve their Gartner Top 25 supply chains rating, by unlocking the integration potential that Procurement can provide.

Meet our Procurement Management Experts

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