Procurement Value Assessment

  • Opportunity assessment: quantitative analysis, price benchmarking, contract analysis & baselining
  • Stakeholder engagement & business requirements/specifications
  • Market analysis & supplier capability assessment
  • Sourcing strategy & sourcing plans
  • Program set-up, governance, PMO & change management

  • Value-based supplier selection.  Price vs Value (quality, service, innovation, sustainability, etc.)
  • Quick wins (short term results), tendering, market reviews, e-sourcing
  • Suppliers negotiations
  • Demand management, Buy vs. make (outsourcing), the total cost of ownership approach
  • Process improvement

Redefining the procurement supply chain

Pre-sourcing

Our added value lies in ensuring Business Stakeholders support a successful implementation

Through:

  • Stakeholder’s pro-active engagement
  • Requirements and specifications definition, stakeholders’ feedback and recommendations
  • Change management process designed through our sourcing initiatives
  • Challenge needs vs. wants

Post-sourcing

We take our customers through the full procurement journey, from stakeholders’ engagement to implementation to ensure benefits remain sustainable

Through:

  • Sourcing Communication,
  • Sourcing Implementation monitoring
  • Compliance (Price, Supplier) & Maverick Buying
  • Savings Tracking & Reporting
  • Supplier performance Tracking
  • Procurement Team and Business stakeholders’ capability building
  • Business Stakeholder “education”

If your need help turning your procurement function into a profit creator and market differentiator, get in touch.

our value proposition

curzon in action

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Contact our Procurement service line lead,Stephane Boroncelli, to find out more

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Procurement Maturity Assessment

Ensuring Procurement generates value to the business

Impactful assessment

Through the evaluation of Procurement, assessing the teams status quo, applying industry benchmarks, and aligning the function against best practice, will ensure any value delivered above and beyond cost savings benefits remain sustainable.

  • Procurement assessment piloted against 8 dimensions, from organisational set-up to procurement processes
  • Comparative analysis to industry benchmark and best practice
  • Quantitative analysis performed on all external expenditure
  • Qualitative assessment of the procurement function, through key stakeholders interview and staff assessment
  • Spend transparency, including spend categorisation
  • Procurement Maturity assessment & price benchmarking

Curzon’s assessment methodology

Our assessment methodology measures the function across all aspects of procurement providing insights in key strategic areas.

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  • Does the organisation manage its suppliers and contracts effectively? Are we an attractive account?
  • How does the supply base perform? What competitive advantage do they bring to the company?
  • How do suppliers and the organisation work together to bring additional value and improvement?

  • Do we have efficient processes, systems & tools to support advanced procurement activity?
  • How does the organisation use advanced analytics to generate fact based approach?

  • Can the organisation demonstrate a prudent and well-planned approach to defining its supply needs?
  • What role does procurement play in defining requirements, in influencing needs and challenging status quo?

  • How does Procurement compare to similar organisations?
  • What are the Top Management expectations towards Procurement
  • Is there clear direction from Top Management?
  • Do we have the right policies and support in place to enable Procurement?

  • What level of maturity does the Procurement Organisation offer?
  • Do we have the right Procurement / Category strategy in place?

  • What is the perceived value of Procurement within the business?
  • Is there a disconnect between Procurement and the business? Why?
  • Is procurement a blocker/enabler to our sustainability, innovation strategy?
  • What has procurement delivered above and beyond savings?

  • Is the organizational structure adapted to Procurement needs?
  • Is Procurement’s size adequate?
  • Does the organisation have people with sufficient capability to ensure effective performance?
  • What are the gaps and training needs? How to increase capability and optimise category strategy

  • Does the organisation have a sound approach to assessing and demonstrating its performance?
  • What has the procurement function delivered over the last few years?
  • What are they expected to deliver in the future?

We believe Procurement should not be a barrier to improved sales, sustainability, or innovation, it should enable these.

With extensive experience in supplier value creation, supply market reviews, seller negotiations and a great track record of delivering cost savings for our clients, I have no doubt we can help you deliver substantial benefits to your organisation.

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Procurement & Sustainability

36B

2019 Global Greenhouse gas emissions

454m

UK greenhouse gas emissions (t)

44%

x vs. 2019

With over 20% of the world’s largest corporates already setting net-zero targets, there are substantial expectations for all businesses to play their part and contribute to carbon emission reductions.

17% – 30%

UK business contribution (UK emissions)

Up to 80%

Supply Chain contribution vs. own operations

The need to change and deliver these low-carbon objectives goes beyond just the legal obligations, the positive impact on a company’s reputation and the commercial benefits of addressing sustainability are far reaching.

UKs Legal commitment

  • Net-zero on all Green House Gas emissions by 2050
  • Reduce absolute carbon emissions by 78% by 2035
  • Reduce water consumption by 50%,
  • Reduce the weight of waste generated by 30%
  • Recycle 75% of waste generated by weight by 2020/21

Social Impact

  • The adoption and engagement of your sustainability agenda can positively impact brand equity and increase customer loyalty, supporting growth.
  • Use your cultural narrative to attract and retain talent

Commercial Benefits

  • Developing sustainable procurement practises allows your organisation to future proof against supply shortages and changes in social, economic and environmental factors.
  • Meeting and exceeding market demand
  • Gaining a competitive advantage

Creating an effective supply chain

We believe sustainability should not be limited to your own operations… your whole supply chain should adapt to your company’s sustainability strategy.

  • Own Carbon emissions
  • Green Energy
  • Water & waste reduction
  • Recycling, Zero waste
  • Plastic use

  • Packaging materials end of product life (recycle, close loop), circular economy

  • Transportation means, frequency distance

  • Pollution, Water, Energy consumption, Waste

  • Type of materials,, chemicals used, amount of waste, production process, carbon footprint

With the support of procurement, organisations can truly influence the overarching sustainability ambitions.

Current Situation Assessment

Establishing your sustainability status quo in critical in calculating what’s required to meet your targets

  • Evaluate the carbon footprint of your organisation
  • Consider your supply chain sustainability strategy and carbon footprint related to your company’s business
  • Assess your company’s sustainability strategy vs. procurement contribution

Sustainability Dashboard

Sustainability commitments require robust governance, transparency, and reporting metrics

  • Define sustainability KPI’s against your company’s sustainability strategy & targets
  • Develop a detailed dashboard
  • Outline and implement monitoring process
  • Describe corrective actions as necessary

Sustainability Strategy

Procurement has a major role to play to address sustainability – the procurement of goods and services makes a significant contribution environmentally, socially or economically

  • Work with your supply base to define sustainability targets and carbon footprint reduction in line with your company’s objectives
  • Monitor and track performance

Drive sustainability

We enable procurement to pro-actively drive sustainability, working with your supply chain to ensure they synchronise to support your company ambitions

ORGANISATION

Is your procurement org enabled to drive the sustainability topic

  • ORGANISATION
  • PEOPLE
  • POLICIES & GOVERNANCE
  • SYSTEMS
  • PROCESSES

PROCESSES

How is sustainability embedded into your procurement organisation?

  • CATEGORY STRATEGY
  • SOURCING STRATEGY
  • SOURCING REQUIREMENTS
  • SLA’S/KPI’S
  • SUPPLIER CAPABILITY
  • DEMAND MANAGEMENT

SUPPLY CHAIN

Does your supply chain support your sustainability strategy?

  • CARBON EMISSION ASSESSMENT
  • SUSTAINABILITY STRATEGY
  • TRACEABILITY
  • TRANSPARENCY
  • QUESTIONNAIRES & AUDITS
  • STRATEGY
  • CORRECTIVE ACTIONS

MONITORING

How are you tracking against your sustainability targets ?

  • SUSTAINABILITY KPI’S
  • DETAILED DASHBOARDS
  • TRACKING & MONITORING
  • SMT REPORTING
  • COMPLIANCE TO STANDARDS
  • LEGAL COMPLIANCE
  • ACTION PLAN

"Curzon have done an excellent job first assisting our Ramsay Sante business and then with Ramsay UK to strategically review our approach to procurement and spending benchmarks across our service lines. The strategy, supplier engagement, best practices and data have presented a number of enduring opportunities to strengthen our approach"

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curzon in action

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Contact our Procurement service line lead,Stephane Boroncelli, to find out more

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Stephane Boroncelli

Principal

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Experienced Strategic Sourcing and Procurement Transformation leader. For the last 20 years, I have been helping my clients to take their procurement organisation to the next level.

I have delivered major engagements across the world, helping clients, to improve their bottom line while optimising value from their supply base. I help mitigate supply risks in this ever growing word of uncertainty and align procurement strategies to business imperatives ( sustainability, profitability, operational excellence, etc..)

My vision of procurement is one where key stakeholders are fully engaged and procurement is seen as a key partner. Procurement doesn’t/shouldn’t hinder Business Optimisation, it enables it.

CONTACT US TO FIND OUT HOW WE CAN HELP

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Gwen Pillon

Analyst & Nextcontinent Coordinator

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I am an Analyst who deliver tangible results to complete strategy and transformation programmes.

My background lies in performing impactful change for companies through data-driven analytics, strong methodologies and innovative solutions. I am particularly interested in building sustainable and resilient approach.

As a Curzon coordinator of Nextcontinent, a worldwide network of 7 500 professionals, I connect members to drive synergies and opportunities.

CONTACT US TO FIND OUT HOW WE CAN HELP

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case studies

Environmental impact reduction in Construction project delivery

Challenge

The building and construction sectors are responsible for c.40% of carbon emissions. Typically, carbon reduction efforts in construction have been focused on the materials or at component-part level.

Curzon supported the client in developing an understanding that all future innovation and digital enablement designed to lower carbon construction processes and ways of working, such as connected autonomous plant (CAP), must address all construction activity and the full project site.

Curzon's approach

Curzon defined ‘The Digital Site’, to provide the enabling infrastructure with an ecosystem of software and hardware technology solutions to function. This will facilitate the most accurate GPS-based automated gearboxes, connected and autonomous plant and more.

Digital site standards are being deliberately designed to enable CAP. The most demanding use-case (electric and autonomous vehicles), can be applied to ensure that any new definition and standard(s) for digital site infrastructure meets the requirements of both the near and potential future for carbon Net-Zero ways of working.

Impact

The Digital Site will be a game-changer:

  • All CAP is powered by hybrid or electric technology
  • Hydrogen fuel-cell powered vehicles have been trialled, with plans for hydrogen fuel-cell powered excavators by 2023
  • Reduced emissions – CO2 (98%) CO, NOx
  • Reduced noise emissions
  • Many networking solutions offer long-term benefits to local residents
  • Lower risk of fuel spills

Contact our Sustainability service line lead,Edem Eno-Amooquaye, to find out more

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Digital acceleration of CN0 planning in Transport Infrastructure

Challenge

The Infrastructure and Transport sectors play a critical role in the UK’s overall Net-Zero ambitions. The infrastructure industry controls 13% of the UK’s total carbon emissions and influences a further 37%.

55% of the UK’s carbon emissions comes from the usage of transport infrastructure. Transport is the UK’s worst-performing sector for carbon reduction, and the only sector where greenhouse gas emissions are increasing.

Our client intends to reduce its carbon emissions and support the government’s ambition to achieve Net Zero carbon emissions by 2050. However, it’s investment strategy for the coming years is currently incompatible with its legal obligation to reduce its carbon. With the siloed nature of current Initiatives on capturing, measuring & reporting not being effectively geared towards carbon reduction, the introduction of some accelerators was necessary.

Curzon's approach

Curzon understands that Innovation, Digital capability and Data will play a critical role in carbon reduction. Our focus was on accelerating to Net Zero through Digital.

As part of this approach, we sought to ground future Net-Zero plans in reality. One of the most prominent challenges faced by our client’s business (and the wider industry) is efficiency across the asset management lifecycle. We took a deeper look into the digital enablement of productivity.

There is an entire spectrum of on-site productivity management capability areas that can be enhanced through the new or improved application of digital tools. Prioritisation and deployment decisions are driven by functional capability assessments and a multi-dimensional review of each tool’s benefits, use in increasing on-site productivity, deliverability and scalability. Moving forwards, tools can be identified/developed/assessed and their prioritisation should be influenced by what they offer from a carbon reduction perspective.

smart manufacturing

Impact

We identified a select number of productivity enabling digital tools that can be scaled to offer substantial heavy-duty vehicle performance, load management and fuel efficiency benefits that will have a significant carbon reduction impact.

Contact our Sustainability service line lead,Edem Eno-Amooquaye, to find out more

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Cost-carbon reduction in Utilities and Property Development

Challenge

Successfully delivering infrastructure associated with water supply and property development growth are two of the most critical features of the UK’s socio-economic landscape. Our client serves the fastest growing area of the country in terms of home building; one in five new homes built in the UK are connected to its network and over 200,000 new homes will be connected in the next 5 years. This will require water infrastructure costing c.£350m.

The business identified recurring sub optimal performance in service delivery to developers and capital expenditure efficiency. Against a backdrop of historic performance failures the ambition was set for the business to be recognised as a true enabler of environmentally sustainable property development growth.

Curzon's approach

Through helping to build a digital business case, sharpen the project strategy and support the organisation in effecting new ways of working, Curzon guided the business in creating a bespoke system.

The system fully digitises the planning and asset delivery processes whilst providing advanced geospatial capabilities. This enables the identification of site cluster for the most efficient, collaborative approach to infrastructure delivery as well as optimum timing on the phasing of infrastructure build activity to align with developer phasing plans.

Curzon identified a number of No Build Solutions (avoiding need to build with early developer engagement) and Low Build Solutions (influencing developer design with early engagement).

In addition, we evaluated commercially and technically innovative alternative water partnership opportunities.

alliancing infrastructure

Impact

The client now has the capability to take a strategic approach to asset planning across the entirety of a water resource zone and recycling catchment area, reducing emissions from construction and reducing design costs by identifying site clusters and efficient solution. Better site visibility provides greater insight on the needs of property developers, enabling sustainability initiatives such as water reuse to be encouraged and cutting the cost of late changes.

This transformation has placed the business on track to deliver c£32m or 9.2% in capital delivery savings over the next five years and 15% in operational efficiency.

Contact our Sustainability service line lead,Edem Eno-Amooquaye, to find out more

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Hydrogen for President?

7 Minutes

For hydrogen to truly stake its claim as the future king of fuels it must make an impactful actual contribution to the clean energy transition. Significant adoption is anticipated in sectors where hydrogen is currently almost completely absent, such as transport, buildings and power generation.
  • Hydrogen use today is dominated by industry, namely: oil refining, ammonia production, and methanol production. Virtually all of this hydrogen is supplied using fossil fuels, so there is significant potential for emissions reductions from clean hydrogen production powered by renewable energy.
  • In transport, the competitiveness of hydrogen fuel cell (HFC) cars depends on fuel cell costs and refuelling stations while for trucks the priority is to reduce the delivered price of hydrogen; for the consumer HFC’s offer greater range than electric vehicles with a refilling experience similar to what we are all used to with fossil fuels. Shipping and aviation have limited low-carbon fuel options available and represent an opportunity for hydrogen-based fuels particularly for long-haul.
  • In buildings, hydrogen could be blended into existing natural gas networks for the end-user purposes of generating both power and heat, with the highest potential in multifamily and commercial buildings (particularly in dense cities) while longer-term prospects could include the direct use of hydrogen in boilers or fuel cells.
  • In power generation, hydrogen is one of the leading options for storing renewable energy, and hydrogen and ammonia can be used in gas turbines to increase power system flexibility.

Green supply to meet demand

According to the International Energy Agency (IEA) demand for hydrogen, which has grown more than threefold since 1975, continues to rise and is gathering pace – currently it is almost entirely supplied from fossil fuels, with 6% of global natural gas and 2% of global coal going to hydrogen production. As a consequence, current manufacturing production of hydrogen is responsible for CO2 emissions of around 830 Mt CO2 per year, putting this in context it approximates to the CO2 emissions of Germany. Fortunately, technology convergence and production efficiency are driving change. Danish catalyst manufacturer Haldor Topsoe has stated plans to build a large-scale facility to make electrolysers to be used for green hydrogen production. This can potentially reduce the cost of green hydrogen by 20%, achieving a price point at which hydrogen becomes cost-competitive when compared to fossil fuels.
Hydrogen, especially green hydrogen, has become the latest ‘strategic ambition’ among energy companies, including big oil and gas multinationals such as Shell, who see potential in developing and investing in the associated technologies.

Hydrogen refuelling stations and hydrogen pumps at traditional fuel stations are being piloted across the Europe as the transport fuel mix evolves and the downstream business models of these oil and gas multinationals follow suit. There are examples from the energy generation side of things too. Big wind turbine manufacturers such as Siemens Gamesa are trialling floating offshore wind platforms with integrated desalination and hydrogen production capabilities in order to create green hydrogen at source.

Eco-friendly competition with EVs

The evangelists of the early 2000’s thought that hydrogen would come to dominate the clean automobile market but their “hydrogen highway” hasn’t quite materialised as yet. Hydrogen power needed and broadly still needs a new infrastructure, whereas rival electricity battery cars can be charged off the near-ubiquitous electricity grid (with an easy assumption made for charging infrastructure – a particularly vibrant market). Additionally, the concept of high-powered batteries has been well advanced for some time with various uses prior to and in addition to EVs. HFCs do not match battery power as a well understood technology. However and as previously mentioned, this is starting to changing at pace with hydrogen pumps being retrofitted to traditional fuel stations across Europe.

As demand increases and hydrogen becomes more available consumers are more likely to adopt a ‘fast-refuel’ option over the time required by current EVs. Consider this in conjunction with the impending headache of what to do with EV end of life batteries and indeed the CO2 created in the manufacture of the average battery – according to research completed by the Swedish Environment Institute, up to 17.5 t of CO2 is emitted by the making of the average electric car battery.

Hydrogen could be the solution

The UK will need hydrogen to meet its goal of net-zero greenhouse gas emissions by 2050. According to the latest National Grid future energy scenarios hydrogen “could be the solution to many of the hardest parts of the transition to net-zero, particularly in long-distance freight, shipping and heavy industry”. Possible futures for the UK’s energy system and routes to net-zero all require large gains in energy efficiency, heavy electrification of transport, a level of societal change and variable reliance on hydrogen.

As we patiently await the UK Government’s Hydrogen Strategy we do so anticipating the rise of green hydrogen providing a super-clean form of energy. The expectation is that this will be driven by convergence between new technology, demand, business collaboration in order to finance increases in production capacity and a supportive regulatory framework. Hydrogen for President…

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Contact our Sustainability service line lead,Edem Eno-Amooquaye, to find out more

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