United Kingdom

Details

  • Service: Advisory
  • Type: Business and industry issue
  • Date: 29/09/2010

Procurement 

Is procurement delivering real competitive advantage for your organisation?

 

We focus on delivering tangible savings and adding true value to our clients' businesses. Our procurement advisors can help organisations to achieve sustainable cost reduction, operational excellence and competitive advantage in the acquisition of goods and services.

What's on your mind?

 

  • Under pressure to cut costs or release cash
  • Concerned about inefficient or ineffective processes or controls in the organisation
  • Concerned about ineffective or underperforming supplier relationships and has suppliers at risk of failure
  • Procurement savings opportunities are not being implemented quickly enough
  • Needs to understand 'value for money' performance on major contracts

 

Bringing you peace of mind

 

We can help our clients to transform the way procurement drives value for their organisation.

 

Our team of specialists are drawn from leading, blue-chip organisations and apply extensive category and supply market knowledge.We work across both public and private sectors, and our performance improvement approach supports the identification and delivery of early opportunities in third party expenditure.

 

This is achieved through the development of a clear vision which is designed to transform the way procurement delivers revenue and cost optimisation benefits. Specifically, we can advise our clients on:

 

  • Spend analysis and opportunity assessment
  • Category based sourcing and contract negotiation
  • Organisational assessment, development, design and deployment
  • Process and policy development, skills training and deployment
  • Procurement systems specification, selection and optimisation
  • Supplier relationship and risk management
  • Sustainable procurement strategies
  • Procurement outsourcing evaluation and implementation
  • Exploitation of legacy procurement technology solutions

 

What's in it for you?

 

  • Typical category cost savings of between 10-25%
  • More efficient and effective processes which can  lead to around a 10% improvement in productivity
  • Reduced supply chain risk
  • Improved revenue through innovation and strategic engagement of the supply base 
  • Improved understanding of the opportunities and value driven by procurement
  • Procurement seen as a credible career development option attracting and retaining the best talent in the market

 

Why KPMG?

 

  • Usual return on investment of 10:1 - over the last two years we have delivered annual savings in excess of £1billion for our clients
  • Our firms have helped major global organisations deliver incremental tax benefits through the implementation of global procurement operating models
  • Over the last two years we have also provided strategic procurement advice to clients' right across the public sector, including pan government collaborative procurement programmes.   
 
Case Study
 
  • Global Mobile Telecommunications Provider: Services Globalisation
  • The organisation set out to transform the indirect or 'services' supply chain for 18 disparate and largely autonomous operating companies.
  • Indirect categories represented €4.5 billion of annual expenditure across a very fragmented supply base. Cooperation between the operating companies was limited or non-existent, with sourcing initiatives conducted locally.
  • A joint client and KPMG team led the development of the opportunity analysis and implementation plan. The plan used the knowledge of the client's supply chain community and inputs from other functions to establish a robust transformation plan.
  • KPMG also provided experienced category managers to address key areas of expenditure, ranging from strategic business critical categories such as Media and CRM through to support and fulfilment services including Human Resources, Mail and Facilities Management.
  • Detailed reporting provided management visibility of progress and formed the basis of decision making at a monthly advisory board consisting of representation from each of the operating companies.
  • The application of sourcing and category skills, together with the migration of categories into a centralised tax efficient procurement company, delivered negotiated benefits in excess of €400million, as well as significant process efficiencies.

Contact

Contact

Richard Nixon

 

Partner
KPMG LLP (UK)

0121 232 3506 | richard.nixon@kpmg.co.uk

Contact

Contact

Jason Smith

 

Director
KPMG LLP (UK)

0121 232 3203 |
jason.smith@kpmg.co.uk

Contact

Contact

Mike Zealley

 

Director
KPMG LLP (UK)

020 7311 6048 | mike.zealley@kpmg.co.uk

 

KPMG Procurement Benchmarking Survey

KPMG, in partnership with CPO Agenda Magazine, have conducted a leading-edge global benchmarking project measuring procurement functional excellence. The results of the survey allow participating organisations the opportunity to compare the performance of their procurement operations with sector and non-sector peers.