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| QP Group Solutions
- Sourcing Management |
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"Can you afford not to release the
true power of
procurement in your organisation?" |
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Sourcing Management is a suite of strategies, tools and techniques that deliver
savings on external expenditure. It is through following the five stage process
set out below that QP Group has helped many companies deliver growth to the
bottom line and at the same time introduce a way of working which allows
companies to continue to do so long after QP Group have left the client.
The five stages of the process are:
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Stage 1 – Project Kick-off
Cross-functional teams are formed, governance agreed and stakeholders engaged. The team is introduced to and educated in the use of appropriate tools and processes.
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Stage 2 – Current Situation Analysis and
Definition
To include defining categories, collecting and analysing spend data and validating the opportunities found. We also identify Quick Win opportunities, which we focus on to deliver immediate savings and start to deliver early benefits from the programme.
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Stage 3 – Strategy Creation
With the information gathered in the previous stage the procurement strategy is created. This is a crucially important step in the process as it will form the basis for the savings generation work as well as providing the first step on the ladder to self sustainability.
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Stage 4 – Strategy Implementation
A very detailed implementation plan is developed to deploy the
agreed strategy. Programme management is a critical factor in this phase, to
ensure work is completed on time and deliverables are realised. Advanced saving
tracking processes are employed to ensure that the benefits are real and
achieved.
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Stage 5 – Supply Development and Continuous
Improvement
Emphasis shifts from “cost down” through “cost out” to
“value up”. Some of the service offerings employed in this stage include
Supplier Management, Supply Management and Specification Management; all take
the process to the next level, which over time will lead to breakthrough
strategies building upon earlier savings.
Sustainable procurement is the ultimate goal and to achieve this, the process
continues. By following the Sourcing Management Process, savings are
immediately apparent in the form of lower invoiced prices from suppliers and
can be tracked all the way to the bottom line delivering a fast, high ROI.
QP Group has worked with businesses across many sectors and countries to
introduce and implement the Sourcing Management process using
cross-functional teams and engaging stakeholders to ensure savings flow through
to the bottom line. If you would like to learn more about the work we have done
in this area click here to access some typical case studies.
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To ensure maximum effectiveness and efficiency we developed the Segmented
Sourcing Approach (SSA) to address a variety of problems that our clients were
facing:
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Whilst it is essential to involve key stakeholders in developing sourcing
strategies, business units are finding it increasingly difficult to staff all
the cross-discipline teams (XDT)
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Regulation such as Sarbanes-Oxley (SoX) and codes of practice such as Corporate
Social Responsibility (CSR) make it increasingly important to have clearly
defined procurement processes, yet it is almost impossible to get buy-in to
processes that seem unnecessarily bureaucratic
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Processes with unnecessary steps delay implementation and therefore slow down
benefits delivery
The following diagram illustrates SSA. We have tailored our methodology to
produce three different approaches to sourcing strategy creation. These are driven
by a variety of factors that can be determined and weighted by the client. Each
approach has a series of mandatory and optional steps / tools. The mandatory
steps drive compliance to regulation and best practice while the optional tools
allow the XDT to customise the approach to best support the category.
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One of our clients recently calculated that SSA has allowed them to save 19 FTE
years of effort over 100 projects and accelerate benefits by reducing average
elapsed time by 50%.
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