Credit crunch

State of Flux has set up this micro site to support our clients in dealing with the effects of the credit crunch.

We currently see all clients looking at their third party costs and risks within their supply chains. Each client we talk to is different; whether they are feeling an immediate impact of the credit crunch, either themselves or within their value chain (that is their customers or suppliers) and need cash quickly. Or, they are taking advantage of the current situation and are in acquisition mode.

Procurement and supply chain savings are attractive as they go directly to the bottom line but we don't think procurement departments are currently moving fast enough to support their business in this 'cash quest'. We believe more emphasis should be given to the function and it's ability to help the business through these times.

To support our clients, we have looked at each of these differing situations clients are in and have identified a number of solutions that can help our clients make the most of their current situation.

These are:

eSourcing: automate the buying processes and cut down cycle time and reduce cost by 5% - 30%, especially the use of eAuctions. For more information click here: eSourcing

Strategic sourcing: use strategic sourcing to drive cost out of your organisation and the third party suppliers, typically (and done properly) we see 30%-50% savings acheived. For more information click here: Strategic Sourcing

Spend and capability analytic: identify those areas within your organisation or third party spend where money could be saved. For more information click here: Spend & Capability

Supply chain audits: conduct audits of specific areas of your business (for example Telecommunications) to identify overpayments or areas of savings.

Research: analyse and identify alternative sources of supply or supplier information to help with understanding your cost base or helping prepare for negotiations. For more information click here: Research

Supplier relationship management: extract greater value and lower TCO, by managing strategic supplier relationships more effectively. For more information click here: SRM

Procurement outsourcing/white-label: outsourcing your procurement function and remove the overhead cost from your balance sheet. For more information click here: Whitelabel

Contracts management: give the ability to track third party commitments and allows the identification of savings opportunities or risks. For more information click here: Contracts Management

Risk in the supply chain: identify those suppliers that may cause disruption to your supply chain. For more information click here: RiSC 

Training for procurement: get your procurement function operating using leading tools and techniques to take advantage of the current market. For more information click here: Procurement training

Training for sales: as other organisations put more emphasis on procurement and procurement techniques, up-skill your sales teams in dealing with your most difficult customer (procurement) and getting 'inside the buyer's head'. For more information click here: ITBH

Supply chain finance: using supplier finance to extend your payment terms and reduce the payment terms to the supplier.

We are committed to helping our clients through this period and feel we are in a unique position to support as 'this is what we do'. If you would like to talk through your situation or require further information on any of the points above please don't hesitate to contact us on +44 (0) 207 842 0600 or click here to email us: email