PA Consulting Group has long-standing expertise in large-scale public and private sector procurement, helping our clients get the best deal from bought-in goods and services.
Effective procurement is becoming a more complex task, yet its importance in delivering value has never been clearer. Procured goods and services make up 60% or more of an organisation’s cost base, a figure which is increasing as companies outsource more services. So there is real potential to secure cost savings if the procurement team has the right knowledge and skills.
Our approach delivers results through:
cost and risk reduction – we implement projects across key categories of spend to reduce cost and manage supplier risk. This approach helped us realise €80m of reductions in material costs for Fiat Group within 12 months
supplier collaboration – by introducing powerful supplier management and development techniques, we create longer-term value. PA has worked with over 200 companies as part of the UK Manufacturing Advisory Service to develop supplier capability
e-procurement – from large scale complex eAuctions to automation across the purchase-to-pay and order-to-cash processes, PA has secured significant savings for clients. Our support for one of the largest eAuctions the Office of Government and Commerce (OGC) has ever run saved over £10.5m
business and procurement intelligence – we develop real intelligence and improvement opportunities across diverse, and often poor quality, spend data. This better use of procurement intelligence helped PA secure over £7m of savings for Sheffield City Council and we are on target to make total savings of £23.5m
procurement organisation and change management – we know how to remove the critical people-related barriers to gaining support for agreed processes. By defining the operating model for a global FMCG company, we enabled the procurement team to double planned savings over two years.
To find out how to secure more value from effective procurement, contact us now.