Expertise: Procurement Consulting & Strategic Sourcing

Objectives and added value:

• The strategy, plan, and initiatives to achieve your medium-to-long-term corporate goals
• Conceptual design of category management
• Measurement, control, and management of procurement

Why is a good procurement strategy so important? What is important to consider? What mistakes should be avoided?

The procurement strategy defines how Procurement's objectives will be achieved in the medium to long term. It is a vital guide for all of Procurement's undertakings and is therefore of great importance to the overarching corporate strategy and the overall success of the company. The central elements of the procurement strategy are: the measurement and control of the procurement organisation and its suppliers; the definition of a holistic category management strategy; the answering of elementary questions (e.g. make vs. buy, supplier mix, risk management, and coordination of demand and supply); and procurement's future direction with regards to technology.

Objectives and added value:

• Optimal organisational structure
• Procurement process optimisation
• Further Education and Training

What does an optimal organisational structure look like? How do you optimise the procurement process? What needs to be considered?

A purchasing department working at its best will achieve the desired outcomes of the strategy. The organisational structure distributes and coordinates the resources by assigning roles and responsibilities and embeds the procurement management in the company's value chain.
Efficient procurement processes reduce resource consumption and increase both quality and response time. An improved use of information through better communication and data evaluation enables fact-based and robust decision making.
Above all, procurement relies on high quality, motivated, knowledgeable employees performing at the best of their abilities, through clear assignment of responsibilities, the provision of opportunities for further training and education, access to up to date information, and continual motivation and inspiration.

Objectives and added value:

• High savings and a sustainable increase in EBITDA
• Fast and efficient implementation of procurement opportunities
• Sustainable embedding in the organisation

Why and how does professional procurement optimisation achieve excellent results? When is a good time? What should be considered?

Through successful and well-executed procurement transformation programs, large procurement savings can be achieved whilst also embedding other strategic goals in supplier relationships and procurement processes. When sustainably implemented and transparently measured, such programs directly improve EBITDA.
Changing market conditions, technological innovations, and internal changes within the company require procurement to implement new strategies and organisational changes. Opportunities arising from procurement transformation initiatives must be seized in order to remain competitive in today's environment. Successful transformation is not only an instrument but also an increasingly important procurement performance indicator.

Objectives and added value:

• Identification and realisation of savings opportunities
• Value contribution in product development and supply chain through successful supplier management
• Sustainably embedding the improved EBITDA contribution

What distinguishes strategic category procurement? How do you proceed? What are possible pitfalls?

The strategic procurement of a category optimises the total cost and ensures quality and availability. Through a portfolio of demand-side and supply-side levers for cost optimisation, procurement process optimisation, and supplier negotiation, costs are reduced, quality and availability are assured, and risks are minimized. Optmal strategic procurement of categories always takes into account the cost-benefit ratio and the availability of resources in any given category.
Strategic category management can significantly increase the value contribution of procurement for your company and should be active in every company with a high proportion of external expenditure.

Objectives and added value:

• Efficient handling and issue resolution of the P2P process
• Ensuring delivery reliability and optimal inventory costs
• Quality, quantity and invoice control 

What distinguishes good from first-class operational procurement? How can operational procurement be improved?

Optimisation opportunities are often found in day to day activities. Operational procurement ensures that the company's procurement requirements are met on time, at the lowest possible cost, and under the agreed conditions. It also ensures order quantity optimisation, requirements validation with the appropriate department, and, above all, rapid action to resolve issues in the purchase-to-pay process. In addition, the operational purchasing department acts as communicator between suppliers, specialist departments and the supply chain and thus is the first point of contact for day-to-day problem solving.
Through these activities and their optimisation, operational procurement exerts vital influence on the success of the entire company.

Objectives and added value:

• Availability, evaluation, and dissemination of information
• Cost, quality, and time-optimised processes
• Optimisation of management activities

When is digitalisation useful? How should you proceed? What do you need to consider?

Procurement analytics and the digitalisation of procurement processes enable you to enhance the performance of your procurement resources through a faster flow of information, the automation of process steps, and by having access to technologies providing new avenues for quality and cost optimisation. The vital ingredients of success in this area are the integration of a holistic digitalisation strategy into the corporate strategy, the selection and implementation of appropriate solutions, and the all-important training of employees.