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Spend and Capability Reviews
State of Flux places significant importance on conducting a spend and capability review as a precursor to any procurement change programme. This provides a complete understanding of current practices, where differing practices exist and where there are perceived capability gaps. Armed with this information, we are then able to work with you on the model of procurement that is best suited to your organisation and to develop recommendations and a plan to achieve this.
A standard process and tool set is used to analyse an organisation’s spend and to determine areas of potential savings and other benefits. This is usually combined with a capability analysis that involves a physical review of an organisation's procurement operations, a survey and one-to-one interviews.
Reasons to consider a spend and capability review:
• Where no cross-organisation, common approach to procurement exists or there is a need to challenge the status quo.
• Where there is a lack of co-ordination and focus in the way an organisation procures.
• Where a clear spend management structure, strategy and plan does not exist.
• Where there is no clarity on the spend drivers and spend make-up right across the organisation.
• Where there is uncertainty on where risks of supply interruption may originate.
• Where a common set of management information does not exist to facilitate the management of spend.
• Where there is no clear timeline to deliver procurement change.
Benefits realised on conducting a spend and capability review:
Practical recommendations that you can implement for each key area of procurement, specifically:
• How to effectively position procurement across the organisation.
• Which procurement organisational structure will most effectively enable the proposed procurement model.
• An understanding of the differing procurement practices across the organisation and where any changes should be made in the drive to be more effective.
• Enhanced visibility on spend make-up right across the organisation: how much spend; with whom; who is spending.
• A plan for “quick win” cost-out opportunities.
• A plan for procurement change that is self-funding.
For further information about our Spend and Capability Reviews, contact us
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