Framework for Identifying Procurement Savings Opportunities PPT

This PPT slide, part of the 15-slide Strategic Sourcing Framework PowerPoint presentation, outlines 4 distinct categories of savings opportunities within procurement, categorized by business impact and supplier situation. The categories are Leverage, Strategic, Routine, and Bottleneck. Each category reflects a unique combination of expenditure levels, supplier availability, and complexity of specifications.

In the Leverage quadrant, the focus is on high-expenditure areas with many available products and services. This situation allows for competitive sourcing due to the abundance of qualified suppliers, making it easier to negotiate favorable terms. The implication here is that organizations should prioritize these areas for maximum savings potential.

The Strategic quadrant highlights scenarios that are critical to profitability and operations. Here, there are fewer qualified suppliers and larger expenditures, which necessitates a careful approach to sourcing. The complexity of specifications in this category indicates that organizations must invest time and resources to ensure quality and compliance, as mistakes can have significant repercussions.

Routine opportunities represent low-value transactions with many available products and suppliers. These items are often purchased by anyone within the organization, suggesting a more decentralized purchasing approach. The focus here should be on streamlining processes to reduce administrative burdens rather than seeking significant savings.

The Bottleneck category presents the most challenging scenarios, characterized by complex specifications and limited supplier options. This situation can severely impact ongoing operations and maintenance. Organizations must be cautious and consider new technologies or untested processes, as these could introduce risks that need to be managed effectively.

Understanding these categories allows organizations to tailor their procurement strategies to maximize savings while mitigating risks associated with supplier relationships and product specifications.

This slide is part of the Strategic Sourcing Framework PowerPoint presentation.

This presentation is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It explains the approach to Strategic Sourcing / Procurement Strategy utilized by global strategy consulting firms.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Procurement Strategy Strategic Sourcing Compliance

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"I have used FlevyPro for several business applications. It is a great complement to working with expensive consultants. The quality and effectiveness of the tools are of the highest standards."

– Moritz Bernhoerster, Global Sourcing Director at Fortune 500

"The wide selection of frameworks is very useful to me as an independent consultant. In fact, it rivals what I had at my disposal at Big 4 Consulting firms in terms of efficacy and organization."

– Julia T., Consulting Firm Owner (Former Manager at Deloitte and Capgemini)

"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact

... [read more]

– Roberto Pelliccia, Senior Executive in International Hospitality

"As a young consulting firm, requests for input from clients vary and it's sometimes impossible to provide expert solutions across a broad spectrum of requirements. That was before I discovered Flevy.com.

Through subscription to this invaluable site of a plethora of topics that are key and crucial to consulting, I

... [read more]

– Nishi Singh, Strategist and MD at NSP Consultants

"As a consultant requiring up to date and professional material that will be of value and use to my clients, I find Flevy a very reliable resource.

The variety and quality of material available through Flevy offers a very useful and commanding source for information. Using Flevy saves me time, enhances my expertise and ends up being a good decision."

– Dennis Gershowitz, Principal at DG Associates

"Flevy is now a part of my business routine. I visit Flevy at least 3 times each month.

Flevy has become my preferred learning source, because what it provides is practical, current, and useful in this era where the business world is being rewritten.

In today's environment where there are so

... [read more]

– Omar Hernán Montes Parra, CEO at Quantum SFE

"Last Sunday morning, I was diligently working on an important presentation for a client and found myself in need of additional content and suitable templates for various types of graphics. Flevy.com proved to be a treasure trove for both content and design at a reasonable price, considering the time I

... [read more]

– M. E., Chief Commercial Officer, International Logistics Service Provider

"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.