Those with an immature or underdeveloped purchasing capability should expect a systematic review to find savings of up to 30%.
Some businesses spend between 40% and 70% of their turnover on bought-out goods or services.
Collinson Grant asks the vital questions to discover how sophisticated the purchasing function is. The answers indicate the potential for improvement. After a more in-depth analysis, we will have the data to review systems and processes, to overhaul strategies and polices, and to get the best out of structures and people.
Improvements in procurement are a regular feature of our assignments. We achieve considerable savings by working with managers:
- to innovate and grow by exploiting suppliers' capabilities
- to optimise the value chain
- to introduce advanced cost management
- to manage risks and the continuity of supply.
At an international business in the nuclear industry, we studied in detail a large number of contracts and purchasing arrangements. Our findings highlighted a number of weaknesses and recommended a programme of action to improve control and commercial effectiveness. Our work led to a series of reviews and projects to move purchasing onto a more professional and less administrative footing.