Procurement Transformation
Procurement addresses expenditure in capital, goods and services, which can represent a significant portion of corporate turnover. It is one of the most effective ways a business can bring down costs, deliver smooth operational and back-office processes and secure vital partner-supplier relationships.
PwC Procurement cycle
Your challenges
1. Find the money
- Expenditure(s) not visible
- Poor Data quality
- Contracts not in place
- Volume not aggregated across divisions/businesses
- Inconsistent specifications
- Large supplier base
- Local vs. centralised buying
- Low profile of procurement
- Transfer Pricing (TP), direct and indirect inefficiencies (incl. compliance)
2. Get the money
- No leveraging of group purchasing power
- Lack of consistent processes
- Strategic sourcing of indirect and direct procurement not fully leveraged
- Best practice procurement practices / tools not applied
- Poor buying / negotiation skills
3. Keep the money
- No alignment of procurement responsabilities (incl. TP and tax)
- Limited change management
- Minimal contract management
- No formal supplier management process
- Procure to Pay process not supporting compliance
- Non-compliance with group deals
- Limited technology support
- misaligned KPIs
What is at stake?
| 1. Procurement analysis |
2. Strategic sourcing |
3. Procurement infrastructure |
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How we can help
- Find the money
- Get the money
- Keep the money
Find the money
- Expenditure analysis & benchmarking
- Value chain review
- Contract review
- Review of payables and receivables (Cashfinder)
- Procurement effectiveness assessment
- Category opportunity assessment
- Risk assessment
- Tax and TP process assessment
Get the money
- Definition of business requirements
- Strategic sourcing
- Application of best practice procurement tools (e-auctions, value engineering, low cost country sourcing)
- Partnering
- End-to-end supply chain design
- Working capital reduction
- Implementation of optimised tax and TP model
Keep the money
- Procurement organisational design
- Procurement function effectiveness (skills, processes and systems)
- Procure to Pay implementation
- Supplier relationship management
- Change management for process and system implementation
- Cultural alignment
- Compliance framework design (incl. TP and tax)
- KPIs and benefits tracking
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