Procurement and Commercial
Apply best in class tools, techniques and in-depth industry experience to radically improve your purchasing, commercial and contract management.
We bring in-depth industry experience and deep procurement and commercial skills to work with you and your teams to deliver more effective, timely and efficient procurement of goods and services.
Purchasing of products and services is often a large portion of an organisation’s budget. And in many cases, the commitment to spend on certain categories and particular suppliers needs to be made in advance, potentially over multiple years. This is often the case, for example, with IT outsourcing, property leasing, various types of infrastructure and facilities management.
Furthermore, an organisation’s overall approach to the supplier market, how it manages specific strategic supplier relationships, and its approach to competition and supplier management, can have a significant impact on costs and quality. As a result, procurement and commercial are key areas to focus on when an organisation is targeting improvements in overall efficiency and effectiveness.
We have extensive experience in advising and supporting clients on improving their approach to procurement. In particular, we have a proven methodology and track record for designing and implementing effective category management. We also have a strong track record of supporting clients in procuring products and services to underpin overall organisational transformation.
Our category management methodology has two key phases: A-Develop Category Programme and B-Implement Category Programme.
In the Develop phase, the focus is on defining and designing the structure of the category management approach, including definition of the specific categories and the key tools and templates to be used, such as the Category Management plan. The second crucial element of this phase is learning and development, to ensure that existing or new staff have the right skills and experience to operate effectively in the new category management regime.
In the Implement phase, the work is broken down into three areas: governance, planning and delivery.
Governance is crucial to the success of category management, and must include, for example, a definition of the overall operating model, the key roles and responsibilities within this model, and the various levels of accountability, decision-making and how to escalate management issues for resolution. Planning for the implementation of category management is also important. Should it be carried out on a “big bang” approach, or in tranches? How should the tranches be prioritised? Will a surge in resourcing be required in the initial rollout stages? And these are just some of the factors that need to be considered.
And finally, the execution and tight management of the rollout plan is critical to success. It must be carried out with the same discipline and rigour that should be applied to any project involving organisation change. In particular, a clear plan is needed with activities, milestones, dependencies and appropriate levels of resourcing. A small, focused set of KPIs should also be established to ensure that the effectiveness of the new category management regime can be measured.
Our approach to broader procurement support also always involves a carefully thought through, structured approach, tailored to the particular client’s circumstances. In outline terms, the typical stages should include:
- Set Goals
- Define High Level Requirement
- Market Search
- Develop Procurement Plan
- Manage Contract Delivery.