Procurement Complexity Simplified: Lower cost, increased profitability

Procurement professionals understand the direct impact they can deliver to the bottom line. 5% of reduced COGS deliver at a minimum an equal margin benefit as 50% increases sales – Can your company afford not to value procurement professionals?

Strategic Sourcing is key to business success. Insufficient visibility into procurement complexity is a corporate epidemic. Procurement professionals are central in driving your business profitability through meaningful stakeholders’ management, benchmarking all key criteria while mitigating risk and managing compliance. Our focus is on Value for Money delivery.

Improvement area’s that need to be considered:

Materials and services costs

Procurement’s involvement will reduce costs between 5%-12% through informed tactical or strategic sourcing decisions.

Supplier Relationship Management

Effective and efficient supplier engagement, data, information and insights will deliver you a further 5%. The cherry on the top is innovation partnership, which will drive your competitive advantage all the way to the bank.

Contract and regulatory compliance

“You get what you measure” is not an empty statement. Here is where budgeted savings are being lost – Monitoring contract delivery and gathering competitive benchmarks throughout the contracts will continuously reinforce and improve your Value for Money decisions.

Supply Chain and Logistics

Cutting your supply chain to size is not an easy job to do, and the challenges in the new wave of technology are many for all supply chain touch points. Procurement professionals add value here through activity-based cost modelling, total cost of ownership, inventory and supply chain cycle mapping research.

Product design

Upfront expert supplier and sourcing involvement in the design of a product will not only deliver fit for purpose specifications but a further 2% hard savings. It will drive your competitive advantage and increase sales at a reduced time to market.


Selling is a process, so is buying! A fit for purpose buying cycle is key to business and the stakes of a wrong decision are too costly. The real value of strategic sourcing beyond managing a tactical process that is transparent, consistent and efficient, is to enable increase profitability, reduce costs and engage stakeholders through competitive intelligence.

Technology integration

With the current wave of Internet of Things, and Internet of Everything, supply chain and procurement processes will be re-defined in the new brave world. Procurement cannot stay behind in this development and embrace the technology integration for all the benefits it will enable us to deliver.

Community and Social Responsibility  (CSR)

Community and Social Responsibility becomes more and more important in selecting suppliers, delivering product and services and engaging customers. To include this increasingly important criterion, procurement can proactively deliver benefits to the end-customer.


For future-proofing efficient procurement practices and drive change management, you need on-going development of skilled professionals with domain and market place expertise.  Proactive coaching approach and team spirit will support actual negotiation success with a win-win mindset for sustainability.

Company – Competitors – Customers

No business is built without sound knowledge of the above 3 pillars. Company culture and objectives, competitors’ behaviour and differentiation, customers’ needs and attitude, all the above need to be researched and understood for the benefit of the business. Procurement professionals sit at the front end of this process and are expert in navigating the needs of the business through the complexity of all the stakeholders with positive bottom line impact in mind.

Procurement Methodology

Efficient and effective procurement management requires a methodology that is developed, endorsed, accepted, implemented and monitored by any company. It needs to fit the culture and is the bridge between the internal wants/needs and external options and engagement. This applies to more than 65% of the turnover for a company.





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