Quantifying savings potential
Within the potential analysis we test your procurement and identify potential for savings and optimization in a very short period of time.
What does this involve?
Normally, the potential analysis constitutes the starting point for collaborating with us to optimize procurement conditions. You’ll quickly get a well-founded estimate of savings potential. We will also develop a specific and detailed action plan to realize savings.
How do you benefit from a potential analysis?
The potential analysis provides you with the certainty to optimize your purchases the right way. You obtain the certainty as to which savings can be realized in the foreseeable future thanks to procurement conditions optimization so that you can precisely estimate the savings potential.
What approach do we take?
During a kick-off meeting, we will jointly define the project team, the objectives and approach for procurement optimization.
Analysis of procurement volume:
We create – insofar as necessary – transparency in your procurement volume by answering the 7 Ws of procurement: "WHO purchases WHAT from WHOM at WHICH price in WHICH quantity WHEN by WHICH process?" As a result, you will obtain a "map" of your procurement volume depicted according to commodity groups, procurement corporate divisions/locations and suppliers.
Estimate of savings:
Based on well-founded benchmarks and interviews with the procurement department/specialized divisional representatives, we will provide you with a specific estimate as to which savings potential exists and within which timeframe the potential can be tapped thanks to a procurement optimization.
By taking cost/benefit aspects into account, we will provide you with an estimate as to which deliverables will be realized due to procurement optimization (savings and qualitative benefits) and which investment volume is required for this. A summary of all measures that are required for procurement optimization forms the final step of the potential analysis.
How can you convince yourself of our core competence regarding a potential analysis?
If you would like to convince yourself of our core competence regarding procurement optimization, we offer you a "mini-potential analysis" at an attractive fee. In this connection, we identify the savings/optimization potential for a material group of your choice.
The mini-potential analysis covers the following services:
- Agreement on the material group to be analyzed and the approach
- Determination of the database for the material group:
- Definition of procurement volume/terms & conditions
- Assessment of current supplier contracts
- Conducting an interview with the purchasers and a divisional representative in charge in order to understand "what, how and why was purchased"
- Definition of the optimization potential:
- Quantification of savings potential based on up-to-the-minute benchmarks
- Pinpointing of potential for improvement in the procurement process
- Determination of measures for improvement under cost/benefit aspects in order to realize savings potential by means of a procurement optimization