The right sourcing strategy can help a company reduce their purchasing cost base, improve sustainability, and safeguard their business for the future.
As an experienced consultancy, Paragon Results are one of the leading specialists for strategic procurement and supply chain management. We identify and realize potential for process optimization and cost reduction for our clients and support them in the transformation process. We develop individual solutions for your situation and anchor long-term competencies, allowing your teams to expand further and achieve successes independently.
On average, 70% of a company’s revenues are spent with external suppliers. That means that a lot of business outcomes and the associated cost, risk and innovation depend upon third parties. Finding the right partners to work with, managing relationships, and getting the best from supply chains are therefore crucial. Getting it right takes the right combination of talent, technology, process and knowledge.
When considering your procurement and supply strategy, it’s imperative to formulate a plan of action that considers both internal and external factors of your business. Here are 12 essential stages for procurement and supply chain management:
- Define the needs of your business
- Market analysis
- Develop the plan
- Market test & engagement
- Detailed documentation
- Supplier selection
- Issue, Bid, Evaluation and Validation of Tender, if applicable
- Contract award & implementation
- Warehouse, logistics and receipt
- Measure performance and improvement opportunities
- Relationship management
- Asset management
Procurement and Supply chain management refers to the acquisition of products and services and delivering it to the right place at the right time.
- The first step is identifying an appropriate supplier or vendor.
- Due diligence – assessing the potential risk associated with each vendor (and their ecosystem). This means ensuring the provider isn’t likely to encounter shortages of any items that are critical to your business, especially when it comes to sourcing physical items and parts
- Logistics of procurement — that is, transporting physical objects or successfully integrating software products
- The final piece involves paying for those goods and services and maintaining a positive relationship with the supplier to ensure smooth operations moving forward.
Our Procurement and supply chain management capability works across the end to end supply chain through plan, source, make and deliver.
We work from strategy to execution using digital technology where appropriate to bring the latest innovative thinking to our clients.