Procurement & Cost Management Excellence
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:
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.
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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Design to Value & Should Cost practices to sustain advanced Procurement strategies
Client situation & approach
Global manufacturer of helicopters wanted to profitably increase market shares in both mature market segments and innovative niches. Investment in key
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Procurement cost reduction program in an engineering & machinery company with savings of 5-10%
CLIENT SITUATION & APPROACH
The Client is one of the largest technology suppliers for food processing and a wide range of other industries with over
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Design to Value project in the Tobacco industry attaining 30% equipment price reduction
CLIENT SITUATION & APPROACH
The Client is a global leader in tobacco products (both traditional and RRP – reduced risk products). For its next generation RRPs
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Value Chain Excellence in Global Tyre Manufacturer
Client situation & approach
A leading global company, active in the development and manufacturing of tires for automobiles, trucks, and motorcycles. Due to growing competition
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Contract Management in the Rolling Stock Sector
Client situation & approach
An Italian leader in high-speed trains design and manufacture of, with more than 2,000 employees, entered into separate contracts for the design and manufacturing of 100
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Disputes resolution and litigation support in a civil aircraft programme
Client situation & approach
An Italian leading company which designs, builds, integrates and supports complex systems for commercial and defense markets worldwide, was playing a
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NEWS ABOUT PROCUREMENT & COST MANAGEMENT
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EFESO selected by ALM Intelligence as the only truly global operational excellence pure player in the Top 5
The ALM Vanguard of Production Operations Consulting Providers assesses firms in terms of their relative ability to create impact for their clients. For this, the ALM Vanguard displays the relative position of the providers featured in this report, deemed capable… Read More -
Concurrent Digitalized Value Chain - The Human Dynamics Approach
In the second KnowBoT, of CDVC series, our experts Lucas van Engelen and Marcia De Troyer touch upon the Human Dynamics approach within the CDVC Model. If we believe that Behaviour is not a coincidence; then it is intriguing to… Read More -
Craft brands are progressing more than private labels and national brands
With unfavourable consequences for the rest of the food industry, craft brands are the ones that are performing best, with an annual growth in value of between 4% and 5% compared to 1.5% for the fast moving consumer goods (source:… Read More -
Leadership and Behaviours for Next Generation Supply Chains
13 Mar 2018 - Leadership Behaviours for Next Generation Supply Chains - Securing the success of strategic supply chain initiatives today and for tomorrow (interim research report). Read More
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