We provide a variety of services under the broad category of sourcing assessment or baseline/gap analysis. We evaluate areas inclusive of processes, procedures, tools, techniques, strategies, reporting, metrics, spend, contracts, payables, responsibilities, organization, etc. The below descriptions provide more detail on our most popular assessments. From the knowledge gained from these evaluations and our broad expertise we will be able to identify the opportunities that are optimal and achievable within your organization. This is critical to your success – our focus is not about trying to get you to a place that won’t work for your culture, your company, it’s about bridging the gap to bring you to your most optimal state.
Our clients often do not know what they are spending on indirect goods and services... and are usually surprised when it is much more than they would have ballparked. We break down this spend. Depending on objectives we will identify spend by category, by supplier and by type and look for variances year on year. We can look at the relationship of your spend to strategic objectives. We will also cross reference spend against contracts and purchase orders in significant areas. We will identify opportunity based on spend, criticality, supplier– taking into account a variety of complexities (inclusive of sourcing, cultural, change). We will also provide guidance on a phased approach to achieving results. If desired we are also able to do a deep dive into your contractual agreements to tie approaches to contract end dates and more clearly identify savings targets and goals.
Many companies turn to software solutions to conduct a spend analysis – in our experience we can more accurately and successfully identify the nuances and anomalies and appropriately identify the opportunities with our approach.
Organizational Assessment and Analysis
As procurement organizations are given more responsibility and all eyes turn to them to reduce hard and soft costs the structure must evolve to one capable of impacting the entire organization. The same skill set and negotiation style does not work on all commodities or with all internal business units. Nor does the same organizational alignment work successfully in every company. An evolved structure entails more than an impact to organizational hierarchy – it involves tools, systems, people, processes – ensuring agility, profitability, productivity and flexibility for your organization. Our assessment is ultimately about one thing – ensuring that the right good/service is delivered at the right time and place for the best possible price. We have direct experience building successful procurement organizations and will develop an optimal design appropriate for your company.
Purchase to Pay / Source to Settle Assessment
What happens in your company between purchase and payment? A little bit of everything? Do you even know? We will likely identify risk areas you are not even aware of. Are your sourcing and payment processes still paper driven? Are you able to easily collect historical spend data to make more intelligent buys? Is the data accurate when you do get it? Can you identify spend by category accurately? Do you still have too much maverick/rogue spend? Is more of your spend off contract than is appropriate? Does this put you at risk too often? Are projects constantly over budget and realized too late to impact? Are you receiving product late? Are your payments continuously late due to your internal approval process? Can invoices for the same good/service sneak through your approval process and be paid twice? Or even more? Can invoices be paid without verification of a contract or verification of receipt of the good/service? Can purchase orders be created and approved without appropriate signoff? We have experience in identifying and implementing solutions for all these questions. Procurement is much more than just a sourcing effort, it does not end there. It also involves the development of a purchase order, verification of receipt of good/service, accurate invoice, payment… and of course ongoing contract and supplier management.
Business Process Improvement and Identification of Internal Control Needs/Improvements
Do your business partners try to find ways to circumvent the process to get things done more quickly and efficiently? Do your processes slow you down? Do you hit your savings targets only to wonder where the money went? Do you lack consistency in approach with each supplier - causing confusion for the supplier and internal team, ultimately driving cost up?
The move to centralized and strategic procurement organizations, along with the changes in sourcing technologies over the last ten years has led companies to revise, reinvent and create business processes that enable them to leverage new methodologies. Appropriately developed processes build profitability, agility, flexibility and productivity into your business. We focus on assisting in bringing processes in harmony with business priorities to ensure success.
We can identify your risk areas and pitfalls and provide solutions that will work in your company .
Contract Portfolio Review and Assessment
Do you have a contract database, contract management system or other type of ‘tickler’ system? Lack of visibility to critical contract clauses and dates creates the potential for spend and leverage leakage as well as overall increased business risk. We can work within such a database or even help you create one. Our team has hands on business experience reviewing, writing, analyzing and negotiating thousands of contracts. This experience can prove to be a crucial asset. Are you still operating under dated contracts that are renewing year upon year without review? Are you signing off on vendor contracts without review? Have you identified your contractual risks? Or the risks of not having a contract? Have the business units executed similar agreements with the same vendor? Are you operating under the most favorable terms possible? Are you paying overages that you shouldn’t be?
Vendor contracts are designed to fit their needs. We know where the potholes are, where your risks are, let us identify your risks and give you the knowledge and preparation you need for your next negotiation.