Analysis and Diagnostic of Current Purchases

Details
October 21st, 2011, 05:39 pm

Summary

One single page ›

Aim

One of the major challenges to the competitiveness of a company resides in its purchasing performance. Optimising purchases enables a company to increase its operating margin. For example, a reduction in costs of 5% can represent an increase in terms of margin equivalent to an increase of 20% or 30% in turnover. Moreover, purchasing optimisation has very little internal impact for the company.

Our analysis allows you to:

  • Compare your purchasing against current standards for the profession
  • Identify possible short and long term savings opportunities (with respect to your purchasing organisation and your purchases spend)
  • Evaluate the financial impact of possible savings opportunities
  • Determine KPIs (Key performance indicators) in order to monitor savings generated during a defined period

Deliverables at the end of the assignment

Upon completion of the assignment the customer will receive a detailed report including the following:

  • A comprehensive analysis of your purchasing spend (per purchase category, per amount: direct (production) and indirect (non-production) purchases, etc.) presented both graphically and in table form.
  • An overview of the purchasing process from the definition of need up to the receipt and payment of goods and services including an analysis of the purchasing function’s role throughout the process
  • A presentation of results with recommendations for actions to be taken (including an estimate of potential savings and associated costs) in order to optimise the company’s purchasing strategy.