Strategic Procurement

We have extensive experience of developing both overarching strategies and formal strategic agreements which deliver demonstrable commercial, operational and technical benefits via in depth market intelligence and leveraging of spend

Companies such as; EC Harris, O’Neall and Brennan, RG Group and Laidlaw Interiors Group have engaged us to undertake strategic reviews for specific projects, market sectors, services and products.

In principle terms, there are four approaches to strategic procurement:

  • Planned – A highly systemised and deterministic process based on long term planning
  • Competitive Positioning – Is concerned with an organisation’s ability to develop a generic strategy that will achieve competitive advantage
  • Emergent – Within a dynamic business environment gaps will be found between planned and realised strategies
  • Logical & Incremental – Organisations proceed by means of short steps, building on strategies already in place and making limited changes

Against a backdrop which ensures an understanding and delivery of true market leading rates, the characteristics we believe are important to any strategic relationship are:

  • Value adding
  • Competence
  • Quality
  • Commitment
  • Loyalty
  • Control

The individual approach which is taken, can vary significantly depending on the nature of the project, trade, business or overhead involved but it would usually involve one or more of the following activities:

 

Rationalisation Leverage spend Competitive tension
Eliminate waste Standardise specification Optimise logistics
Relationship management Supply market analysis Low risk call-off
Make v buy analysis Analyse TCO Model ‘should costs’
Process engineering Formal agreements Category management
Spend analysis Risk management Performance management
E-Procurement Dashboard reporting Procure to pay processes

 

Fundamental to all the above is the ability to reduce prime cost, drive efficiencies and address the risks in the supply chain, which are typically:

 

Changing market forces Over reliance on 3rd parties
Insolvency Health and safety
Agreeing contract conditions Performance
Cheap entry prices Interfaces
Assumed buying gains

 

Eclipse Procurement Solutions has the technical skills and experience necessary to fully analyse your needs and ensure that the correct strategic approach is taken to ensure that strong foundations are set up not just to deliver tangible benefits today but also drive continuous improvement within long-term strategic relationships and help you achieve your annual improvement targets.

An example of this type of work and the prime cost savings we have delivered was published by the Federation of Plastering & Drywall Contractors (FPDC) in a recent article. Full details of this article “SMART PROCUREMENT – Delivers tangible bottom line savings” can be found on page 25 via clicking the following logo.