Making your Budget Resilient in 2023
As we move towards the end of the year executives are renewing their focus and plan for their budgets in the coming year. In these uncertain times there is a focus on cost control and service improvements. These will allow a business to emerge from the current situation leaner and stronger than they are today. By focussing on indirect procurement now, businesses are establishing headroom & resilience in their budgets for 2023 and beyond..
Our clients are approaching this task with savings in hand to direct where they will have the greatest impact. By examining your business spend across indirect procurement categories you can also emerge stronger.
In their recent study “A defining moment: How Europe’s CEOs can build resilience to grow in today’s economic maelstrom”McKinsey & Company highlighted the 3 main characteristics of resilience needed by organisations to survive and grow in the current challenging climate. These were;
- Response: Do I have the right capabilities and am I acting on all resilience levers to respond adequately to the current situation?
- Foresight: Can I anticipate what is going to happen next?
- Adaptation: Am I able to adapt fast to a new situation?
For small and medium-sized organizations the window of opportunity may be rapidly diminishing. To maximise the impact of any change on your business the time to act is now. This is where we are able to assist. We can deliver additional support, knowledge and expertise to your organisation. This will free up time and budget to focus on areas that will help you grow.
Response: Do I have the right capabilities and am I acting on all resilience levers to respond adequately to the current situation?
The time and investment required to deliver additional resources can make this feel unfeasible. Our consultants are all senior procurement specialists able to effectively add value to your procurement function from day 1.
Through effective & rigorous indirect procurement we see an average return of investment of 5:1 across all Ebit projects. This is giving companies additional headroom in their budgets which can be deployed where they benefit the business to grow.
Foresight: Can I anticipate what is going to happen next?
Oh to have had a crystal ball in 2020! None of us can predict what the future will entail but we can put structures and plans in place. These assist our clients to withstand disruption caused by supply chain challenges. Our clients are also using our expertise to help mitigate against inflationary periods and rapidly escalating costs.
We are constantly “out to market” across multiple categories and services. This ensures we have up to date knowledge on trends and changes. This knowledge can then leveraged to ensure you achieve the best services and pricest. Once again adding to resilience across the business.
If organisation wide change management is needed we will engage with stakeholders across the business. By bringing your team together and helping them to establish workable policies and systems we can ensure continued impact from our projects.
Through our Contract Management System it is also possible for clients to regain control of their contracts. This helps to identify areas of risk and non-compliance across your business. This allows companies to effectively plan and budget in the knowledge that contracts are in place to support and enhance their efforts
Adaptation: Am I able to adapt fast to a new situation?
Being able to identify and move on new opportunities is essential. By controlling and cutting costs our clients are well placed to be able to move quickly with available budget.
To support each clients unique needs we offer a range of Procurement services. From a fully Managed Service through specialist Category Support and Consultancy to a fully remote Virtual Procurement Service. Each engagement is designed to assist our clients with their unique needs.
Whilst cost savings are at the forefront of our services we always look at other contract enhancements as well as supplier engagement and management. This ensures that the services delivered with our clients offer the best solution for the long term.
With a team of Category specialists as well as Generalist procurement support available we can assist your business as it adapts and thrives in the current market.
For more information on the clients we work with and the services we offer click here
Contact us to find out how we could help your business too.