Collaborative Procurement

Harnessing volume opportunities with buy-in from all stakeholders

Overview

K Consulting’s approach to collaborative procurement delivers savings and the benefits of volume leveraging across decentralised businesses or purchasing organisations. We help our clients overcome the key issues typically encountered in this area, such as commercial ownership, operational control, service level performance and benefits sharing.

Following an initial procurement diagnostic, we work with all stakeholders to build a full cost/benefit valuation of a joint approach on a contract-by-contract or category-bycategory basis.This approach ensures that each individual or group is clearly engaged and informed and can fully support
implementation and future compliance. Throughout this process we adopt a ‘neutral facilitation’ stance, removing fears for any party of losing control or of an unbalanced outcome. This enables us to build a procurement strategy and plan that aligns the needs of each stakeholder with the wider
needs of the broader group. As a result, the right purchasing decisions can be made on an ongoing basis, and volume savings can be realised in the short and longer term.

Key Steps

Analyse spend across categories and contracts
Establish detailed product and service specifications and business needs
Build full cost / benefit valuation and validate with all stakeholders

Identify synergies across locations
Build strategy with input from all stakeholders
Select suppliers that meet needs and rationalise supply base
Negotiate volume supply arrangements with suppliers

Obtain final approval from all stakeholders
Award contracts and establish preferred supplier agreements
Communicate decisions to all suppliers
Roll-out new strategy across all sites and centrally as required

Benefits

Cohesive Strategy - a strategic approach considering the needs of all stakeholders
Savings - significant savings achieved by leveraging volumes
Improved Service Levels - greater attention to service levels from the supply base
Return on Investment - aim to deliver ROI on procurement project in 1 year or less
Resource Optimisation - employ existing procurement resources at maximum potential
Collaborative Approach - a platform on which further collaboration can be built

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