Ebit Intelligent Procurement: A Typical Approach
Last week, we talked about the tools that we use to reduce costs and add value. Today we’re going to discuss how we use these tools by outlining a typical new client engagement approach.
We insist and focus on adding value right at the very beginning. In virtually all cases we have even identified potential savings before having started on site by carrying out some benchmarking early!
We review ‘non product’ spend, applying the Pareto rule and paying particular attention to the suppliers who form 80% of total expenditure. Based on stakeholder feedback we also focus on suppliers that are strategically important or where service levels are causing operational friction. From this we develop a list of potential opportunities.
We report back and engage with stakeholders, formalising a prioritised opportunity plan. Then we engage with the relevant wider teams to gain buy-in to the plan.
We Run Activity
We run procurement activity and keep teams involved and informed along the way. This includes:
- Writing and running tenders
- Managing information
- Supplier negotiations
- Writing and implementing contracts
But we don’t stop here. We continue to support until the implementation is complete and work with stakeholders to agree, finalise and formalise savings through to the bottom line.
By following this proven model of working we have delivered significant savings and added substantial value to more than 80 businesses.
Contact us to find out how we could help your business too.
Curious about the tools we use to achieve results? See last week’s post here.