When most people think of a spend analysis, they immediately think of colorful bar graphs and pie charts that neatly sum up an organization's spending behavior. What is not known is all of the prep work and data management that goes into developing this final analysis. For every hour that goes into analyzing spend data and preparing the final report, many more hours were spent gathering, consolidating, cleansing, and standardizing the data. We guide you as per the below process.
The benefits of enabling the Sourcing process with the appropriate tools can be classified under four main headers. The end result is that e-Sourcing allows the procurement strategy to be implemented more effectively and increases its credibility and its engagement in the organization: Analysis (spend, process, performance), Process and knowledge management, collaboration, negotiation and compliance.
SUPPLIER RELATIONSHIP MANAGEMENT
Supplier relationship management (SRM) is a business process focused on managing value in the business. It includes SIM (Supplier information management), SRM (Supplier risk management, SPM (Supplier performance management) and SRM (Supplier relationship management). Value creation is the key to SRM, where activities create new value through improved efficiencies or productivity (a “win-win” scenario).
The next-generation procurement organization will feature a new type of talent, one that is comfortable with technology, able to speak the language of the business, and will transfer knowledge to navigate complex organizations to drive change. Procurement will become a management consulting collaborator and ongoing self-reinvention and innovation is required for sustainable improvement that benefits the overall business. We are driving that change towards a value delivery out of procurement innovation.
Category Management is a structured approach to the procurement of goods and services. It applies best practice tools and techniques in the development and implementation of an integrated category strategy aligned to the organization needs. It applies a robust structured strategic sourcing process to the purchase of all goods and services. It involves local stakeholders in the sourcing process.
CONTRACT LIFE CYCLE MANAGEMENT
Contract life cycle management is the process of systematically and efficiently managing contract creation, execution and analysis. The aim is to maximize operational and financial performance and minimize risk. There are many definitions of contract management, the majority relates back to post-award activities. Successful contract management, however, is most effective if upstream or pre-award activities are properly carried out.
KPI AND VALUE REPORTING
Procurement professionals are fully aware of the important role that they play in risk management, quality and bottom line contribution. The important link that is often missing is the use of a comprehensive, clear and credible performance measurement system that enables the measurement and articulation of procurement achievements to all stakeholders and shows the direct delivery to the bottom line of any business.
Lean Procurement is about simplification. Processes become complex, convoluted and wasteful over time. Lean Procurement begins with mapping the current Procurement value stream and its intersection with other processes, functions and suppliers. Waste usually stands out. Good leadership and organisational self-discipline to continuously attack, understand root causes and eliminate non-value added activities and processes will keep the procurement process and engagement lean, effective and efficient.