Addval

Spend Visibility: Information is power. The first step is to have a database or report that allows us to systematically understand what we are spending on and with which suppliers. If this overview does not exist, it must be built—it will be our guide to focus our efforts.

Questioning Specifications: Why are we purchasing these goods and/or services and not others? Purchasing and Procurement teams have a crucial role in questioning user departments about what is being purchased, challenging paradigms, and working with suppliers to find more efficient options.

Demand Management: Are the purchased volumes aligned with the company’s needs and operations? Could they be reduced? These seem like obvious questions, but they are often taken for granted and not questioned (usually due to lack of time… daily tasks consume the agenda). There is no easier way to save money than buying less.

Supply Management: Competition is always beneficial. Our suppliers should know that we will be vigilant and proactive in seeking more efficient and convenient options. Commitment is also valuable, especially for strategic goods and services. Establishing medium and long-term agreements with our suppliers also helps in securing better terms. If we only issue purchase orders for a fraction of our requirements, our supplier may never see the full volume of our business. Increasing demand and creating long-term contracts, whether with exclusivity or preferred volume, also brings better conditions.

Risk Management: While its primary objective is not efficiency, it ensures the operational continuity of the company. With all the measures and restrictions we have seen since the beginning of the COVID-19 pandemic, having a Plan B is more crucial than ever. This plan is built based on the intersection of two variables: availability or variety of supply and criticality of the goods within the company’s production processes. The plan involves mapping these goods and services, their suppliers, and defining for each (or group) the actions to take in case of supply disruptions before they occur. Be prepared. We are closely familiar with these issues and know how to support our clients. Our experience is validated by average savings of 23% in our projects and long-term sustainability of efficiencies. If you need assistance with your efficiency plan, please contact us.