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.

Contact Preetesh

CONTACT US TO FIND OUT HOW WE CAN HELP

Contact us

Curzon Consulting Background

Chairman's Masterclass: "Leadership and Legacy"

11th October 2018

Event: "Leadership and Legacy"

11 October 2018

By Andrew Morgan11th October 2018

On 11 October 2018 we are joined by Paul Dreschler, CBI President and Chairman of Bibby Line Group.

Paul will share his views on the role that business and business leaders have in shaping the future of Great Britain.

The Unbankable Sector of Outsourcing is the latest event in our Chairman’s Masterclass Dinner series, providing UK business leaders with insight for over a decade.

000 days 00 hours 00 minutes 00 seconds

CONTACT US TO FIND OUT HOW WE CAN HELP

Contact us