Procurement always needs to have a focus on cost – after all in many manufacturing industries, the acquisition of raw materials can be 50% or more of sales. The lever to improve the P&L through procurement is thus significantly higher than in sales.

However, just increasing the drumbeat and asking the procurement organization to reduce cost by negotiating a further cost down with vendors is likely to yield diminishing returns. Success can typically only achieved (or improved) by changing the approach.

My approach thus focuses not on negotiating „harder“, but smarter. Typically many of the benefits (especially those that will generate long-term value) are found WITHIN the buyer’s company, not the vendor’s.

Einkauf muss kostenorientiert sein – schließlich kann der Einkauf von Rohstoffen in vielen produzierenden Industrien 50% oder mehr des Umsatzes ausmachen. Der Hebel zur Verbesserung der GuV durch die Beschaffung ist damit deutlich größer als im Vertrieb.

Die Beschaffungsorganisation einfach dazu aufzufordern „noch schneller zu rudern“, und die Einkaufspreise bei den Lieferanten noch weiter zu senken, wird zu einem abnehmenden Grenznutzen führen. Der Erfolg tritt typischerweise nur ein (bzw. wird signifikant verbessert) werden, wenn der Ansatz geändert wird.

Mein Ansatz konzentriert sich also nicht darauf, „härter“, sondern klüger zu verhandeln. Viele der Einsparungen (vor allem diejenigen, die langfristigen Wert generieren) werden oft in der Firma des Einkäufers gefunden, und nicht beim Lieferanten.

What, from Whom and Where, How and How Much is
your procurement organization buying?

How can influence product development and innovation
at our vendors AND within the your company?

Can we setup procurement cost-down projects
as an annual recurring program?

When annual budgeting comes around,
do you guess your input costs for next year?

Are the objectives of procurement aligned
with the objectives of the company as a whole?

These questions, and many more, will be answered
by the Procurement Quick Check.

Consulting: Quick Check

If you have the feeling that your procurement may not be providing you the full value you require from them, I can run you through my procurement quick check. In a structured interview with key stakeholders in your organization plus spot checks of your procurement performance, I will provide you with a first assessment of areas of improvement.

All you need is about one manday for preparation and one manday for the interviews – spread among several stakeholders. After the interviews, I will prepare a summary of my findings plus recommendations for the next steps.

Contact me.

My Procurement Network

If, in discussing an engagement, or if during engagement execution, we decide we need reinforcement to achieve our desired goals, I can activate an extensive network of suppliers, consultants, industry experts, software designers and engineers and investors between Europe, Brazil, Argentina, the USA, China and India.

Together, we will discuss the best way forward of including my network partners to achieve our targets.