Viewpoint May 2012

30/05/2012

Future Purchasing Viewpoint  
Simon Brown

Jon Hughes
Chairman, Future Purchasing

Welcome to the latest edition of FP Viewpoint. It is being written at a time when the Eurozone crisis appears to be at an inflection point, with a real risk of collapse in peripheral countries and the banking sector.

Under such highly charged and volatile conditions, there is a natural tendency to concentrate only on the day-to-day and postpone investment in building the overall capability of procurement.

So the intention of this Viewpoint is to argue for a dual agenda: a strong, disciplined, executional focus on the maximisation of financial and operational improvement deliverables (cost x cash x performance) while simultaneously driving business process and organisational development goals (innovation x risk x process). Always keen to hear your views on the challenges of balancing these twin goals.

By email:

ejhuges@futurepurchasing.com

By telephone:

+44 (0) 7958 763159

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Procurement Transformation

Over the last decade Future Purchasing has worked alongside many clients as their development and performance improvement partner.We combine intense operational focus on securing a strong pipeline of cost saving opportunities with an equally passionate commitment to longer term competence and capability building of the function.

If there are ways in which we can support your transformational agenda, please don’t hesitate to contact us for a free, forthright and confidential discussion.

Mark Webb, Managing Director, Future Purchasing

Firstly, our Category Management Survey

Just in case you missed the invitation to participate in our survey ....

We are strong advocates of procurement embedding modern, robust business processes, capable of delivering superior value in a high-performing and sustainable manner.

Category management is one of the most important of these. But is it succeeding? If it is, what really enables that success? If it isn't, what are the major blocks and barriers encountered?

If you haven’t yet done so, please take the time to complete our survey online. It will help us all enormously and provide strong insights into the current state of the art. You will of course receive a complimentary copy of the report as a personal thank-you.

“….early results suggest that 47% of respondents feel that optimising their category management could deliver 4% or more additional savings. The report will contain the clear recommendations from respondents on how such significant value can be unlocked.”

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Secondly, Reframing Procurement Project

Over the last eighteen months FP has been working with strategic partners – Henley Business School (UK), Vantage Partners (US) and DILF (Denmark) – on a major project, “Reframing Procurement’s Strategies, Priorities and Deliverables” , to define the critical value levers for procurement.

The fourth of five articles on this subject has just been published.

“Market Interaction Strategies – how to secure cohesion in multiple purchasing strategies” , by Søren Vammen and Lars Mikkelsen, argues for an integration of three critical strategies across categories, business relationships and risk, into one unified approach.

It examines a number of strategic options for managing supplier relationships within a continuum of possibilities for harnessing both traditional and innovative contract methodologies.

Download this latest article on risk mitigation here Link Arrow
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knowledge hub Other Articles in the series

Part 1: Benchmarking Performance against Ten Value Levers : covers three main types of sourcing and supplier value management (SVM) initiatives as well as a tool for benchmarking procurement transformation.

Download this article on sourcing and SVM here

Part 2: Accelerating Cost Down Initiatives – Unlocking the Missing 20% : focuses on how organisations are driving transformational cost management campaigns and provides a 10x10 value lever framework for achieving them.

Download this article on transformational cost management here

Part 3: The Value of Value in Supplier Relationships : assesses the options for building different types of value from supplier relationships, while positioning procurement as a driver of relational value creation in both the private and public sector.

Download this article on maximising value in supplier relationships here

Advance Notice: the fifth and final article – on Strategic Capability in Procurement – will be available in September 2012.We will of course circulate it in Viewpoint.

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