Driving Strategic Impact: A Curzon Consulting Guide to Procurement Excellence

3 Minutes

As management consultants, we help clients achieve substantial cost savings and efficiencies through procurement transformations. But truly effective transformations require surmounting common challenges like limited spend visibility and stakeholder alignment.

Based on a recent engagement delivering over £5M in savings, here are our proven tips for procurement transformation success:

Optimise spend visibility

Robust spend analysis is crucial. Categorise expenditures and pinpoint top suppliers and contracts per category. Without clean baseline data, it’s impossible to identify savings levers. Advanced analytics and mining uncover hidden insights, while stakeholder interviews provide a qualitative context.

Benchmark and identify gaps

Benchmark pricing and performance versus industry best practices to reveal overpayment. Consolidate volumes for improved leverage. Deep supply market analysis uncovers alternative vendors and guides negotiations.

Strategise and priortise

Conduct opportunity assessments to inform transformation planning. Develop tailored category-specific sourcing strategies. Model potential savings scenarios and sequence initiatives based on impact, effort, and stakeholder readiness.

Secure stakeholder alignment

Amidst change, align stakeholders through clear communication and early buy-in. Identify key decision-makers and influencers. Educate on best practices and projected bottom-line impact. Procurement must shed its tactical image and be seen as a strategic function driving millions in bottom-line impact.

Relentlessly implement

With the strategy set, focus intensely on implementation. Maintain discipline in negotiations while preserving supplier relationships. Enforce contract compliance and tail spend management.

Continuously improve

Sustaining change requires continuous improvement. Redesign operating models, policies, KPIs, training, and integrate new tech and ways of working. Build analytics to monitor savings and flag waste recurrence. Institutionalising change is the hallmark of procurement leaders.

After meeting our cost-savings goals, we leveraged our award-winning assessment framework to ensure the procurement organisation’s long-term success. Our framework evaluates Procurement across five dimensions: People, Strategy, Systems, Governance, and Management. This data-driven approach identified gaps and enabled us to strategise implementing best practices. Ultimately, these steps addressed challenges, so the procurement organisation can expand its influence and be viewed as a strategic partner across all business units.

In conclusion

As trusted consultants, we overcome inertia and silos to deliver rapid yet lasting transformation. With deep expertise and cross-industry perspective, we objectively assess opportunities, align stakeholders, and implement best practices. The result is simplified sourcing, lower costs, reduced risks, increased efficiency, and strategic impact.

Let us conduct an initial diagnostic for your procurement organisation. We will benchmark performance, identify savings levers, and provide a roadmap to deliver value.

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Procurement Sustainability - Scope 3 carbon emissions

Did you know that...

Countries will have to submit detailed and ambitious carbon-cutting plans by the end of 2022

Scope 3 emissions can represent Up to 90% of a business total carbon emissions

Actively addressing carbon emissions and sustainability provide a clear competitive advantage and generate additional revenue

90%

Need help to reduce your supply chain carbon emissions?

Check out our short video and find out how!

Want to know more and receive a Scope 3 information leaflet?

Our Scope 3 emissions calculation methodology allows you to identify emission reduction opportunities within your supply base

Assessing scope 3 emissions from your supply base shouldn’t and cannot be reduced to a calculation methodology only

(click the image below for further detail)

Not only we will apply our unique calculation methodology to assess the carbon emissions coming from your supply base, we will also deconstruct your product/service process to create the transparency required to run the assessment. We will then look at the results, identify opportunities, define the right strategy and engage with your supply base to ensure your goals are achieved

We have been helping our customers to identify and address their Scope 3 GHG emissions. Through a stepped approach, we create transparency on all procurement related Scope 3 upstream and downstream emissions

Curzon will support you on each step of the journey, from defining the scope of the project to engaging with your suppliers once opportunities have been identified

Our dashboard will bring Scope 3 emissions transparency in each component

We can also help on scope 1 & 2

With our methodology, you will be able to compare emissions generated by your supply base for each product or service that your company is selling

The illustration below, created for a healthcare institution (hospital) gives you an indication of what the outcome of our assessment could be. Please move your mouse over the picture for more information - all numbers are fictive and for illustration purpose only

(Select the image below for further detail)

  • This fictive hospital offer different type of services to its patients, from general surgery to orthopaedics, ophthalmology, etc.
  • Our assessment allows this hospital to assess, for each of the service offered, the total amount of carbon emissions generated each time a procedure is conducted, for example a hip surgery generates 56kg of carbon emission (Scope 3 – supply base)
  • It then allows the hospital to identify which treatment to focus on to reduce emissions and make a substantial sustainability impact, in this example hips and knees orthopaedics are highlighted in red as big contributor to the total emission

  • As we identify services or products with high carbon emissions, we can then deep dive to identify where exactly in the process, emissions are the highest
  • This could be a deep dive into the production process or In our example, we define the patient journey to hip surgery, from first appointment to last session of physiotherapy post operation
  • Our fictive illustration shows that we need to look at patient commute, work with our lab partner our theatre equipment and the knee prosthesis to make an impact

  • We also aggregate emission assessment at supplier level to identify suppliers with the highest reduction opportunities, compare similar supplier, define the reduction strategy and engage with your partner to achieve your sustainability target

The example above is just an illustration of Curzon’s expertise, applied to an healthcare example. Our expertise cover many sectors, including manufacturing

For more information on how Curzon can help your organisation in reducing Scope 3 supply base emissions, please get in touch

Want to know more?

our value proposition

curzon in action

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

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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.

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 & 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

Supply Chain Consulting Services

We have defined a methodology enabling clients to assess their Supply Chain carbon emissions… and act on it!

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"

our value proposition

curzon in action

Sign up to our insights

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

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