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Procurement management

Embedding of purchasing in the supply chain

The increasing complexity and volatility of procurement markets, as well as new organisational, procedural, and functional requirements, are changing the classic profile of purchasing. Therefore, in order to be able to act as a corporate function that differentiates itself from the competition and adds value, purchasing’s understanding of its role, as well as its expertise portfolio  and its efficiency, must be systematically and regularly reviewed on the basis of key questions:

  • Is purchasing merely an “ordering function”, or is the strategic task fulfilled as an equal partner in the value chain?
  • Is purchasing capable (positioning, resources, qualification etc) of making the required value contribution to the company’s success?
  • Are potentials on the procurement markets being exploited, and are supplier relationships being continually examined?
  • Is procurement sufficiently transparent?

Using these questions, ROI consulting analyses the degree of professionalism in purchasing and its embedding in the supply chain in order to spot potentials and define needs for action. In so doing, we concentrate on bringing the three control variables – service level, costs, and funds commitment – into proper balance.

Service portfolio for purchasing management in the supply chain

  • Goods-group management with systematic optimisation of procurement costs
  • Cost management
  • Goods-group strategy
  • Requirements management
  • Global procurement market
  • Supplier management in order to concentrate procurement volume
  • Selection of suppliers
  • Evaluation of suppliers
  • Development of suppliers
  • Phasing out of suppliers
  • Procurement organisation in order to ensure long-term success
  • Purchasing as equal partner in the value chain
  • Processes, interfaces, responsibilities
  • Qualification
  • Organisational structure
  • Setting up of sourcing locations
  • Transparency and procurement controlling
  • Data structure
  • Reporting
  • Risk management and compliance
  • Automation and IT support in purchasing

In the process of improving procurement, the traditional boundaries of purchasing often have to be overcome. What is required is a holistic approach that takes hold at an early stage of the product development process and, in addition to the well-known methods of strategic purchasing, also targets optimisation of the entire supply chain.

ROI consulting supports its customers introducing “holistic procurement management” with the requisite mix of expertise in development, purchasing, and supply chain management, and we provide worldwide operational support, up to and including qualification of local suppliers.

 

 

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