Short, Medium and Long term procurement opportunities
Summary
The Identify phase is the cornerstone of our process. We work closely with your team over a 4-6 week period to conduct a thorough analysis of your current business objectives and practices. This inlcudes:
Listening to the Client: We understand how important it is to understand our client’s objectives and critical success factors before embarking on any improvement initiative(s)
Behaviours and Culture: We analyse the procurement behaviours and drivers within your organisation to identify the barriers and the areas for development.
Data Analysis: We examine different data-sets including spend and spend patterns, payment terms, invoicing and other areas of opportunity for investigation
Supplier Performance: We assess your suppliers' criticality to the business and their respective performance, ensuring they meet your business needs and deliver value.
Existing Agreements: We review your existing supplier agreements to identify risks, assurity of supply and opportunities for improvement.
Contract Management: We evaluate how well your contracts are governed including management, storage, format and visibility of forthcoming renewals.
Key Steps
IC Procurement’s approach to carrying out the review of third-party supplier spend will consist of 5 Key Steps.
Key Steps
IC Procurement’s approach to carrying out the review of third-party supplier spend will consist of 5 Key Steps.
Step 1
Kick Off Meeting
The initial engagement encompasses the discussion of the following elements to determine the business priorities, detailed scope, expectations and programme overview.
Key drivers, challenges and business objectives
Critical success factors and outcomes
Data Requirements (purchase ledger and contracts)
Key stakeholder list
High level key milestones and project plan
Step 2
Data Cleanse and Classification
Before data can be reliably utilised, it will first need to be cleansed, classified and merged. Our partner, The Classification Guru (TCG), will cleanse and classify the data that will enable IC Procurement to identify opportunities, highlight areas for improvement and help inform better business decisions.
Once this process has been finalised, the data will then be manipulated and visualised into a number of practical dashboards and reports for trends and insights.
Our proposed approach to achieve this will be;
Review data
Build data model
Classify and categorise data
Data analysis, validation and verification
Merge data
Step 3
Validation and Comprehension
Data in isolation only tells one side of the story. IC Procurement will look to undertake a number of interviews with the key stakeholders’ community where we will discuss what the data is indicating and compare this to what is happening / believed to be happening in practice. We anticipate that the exercise will present opportunities in itself but give rise to other lines of enquiry and / or further information requests.
Interviews will typically cover, but not limited to;
Operational objectives, budget forecasts, ways of working
Service requirements, constraints, contracts, SLA’s, KPI’s, commercial models
Perceived bottlenecks
Current source to pay practices
Spend reports and dashboards
Supply chain agreements (formal and informal)
Supply chain performance
Step 4
Interpretation
As part of the Interpretation Step, IC Procurement will utilise various tools and methodologies to identify opportunities. We appreciate that one approach does not fit all and while we employ tools such as the Kraljic model, which is a strategic segmentation of supplier risk by priority; we utilise other methodologies that harness other areas of intelligence such market volatility, uncertainty, complexity, risk management and sustainability.
The opportunities identified throughout the previous steps will be categorised and prioritised in terms of function, key categories, size, complexity and effort required to deliver.
Step 5
Recommendations and Next Steps
IC Procurement will produce a detailed report of its findings along with a set of recommendations which takes account of the business priorities, objectives and constraints.
The report will comprise;
Spend category analysis
Potential savings opportunities (prioritised) and the quantified benefits based on our experience and benchmarks
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IC Procurement provided independent Challenge, insight and a pragmatic approach, helping us navigate the complex field of Procurement whilst on a journey to become an Intelligent Client
Head of Organisational Capability, EDF
Get in touch today
Its good to talk and we are happy to listen! Feel free to call us or schedule a Teams call to discuss what’s on your mind.
Address
IC Nuclear Ltd t/a IC Procurement The Growth Hub University of Gloucestershire Oxstalls Lane Longlevens Gloucester GL2 9HW
