Optimizing Procurement Strategy for Sustained Savings PPT
This PPT slide, part of the 15-slide Strategic Sourcing Framework PowerPoint presentation, outlines a framework for achieving savings through a structured procurement strategy over time. It illustrates a trajectory where savings are initially identified, delivered, and then sustained. The vertical axis represents the level of savings, while the horizontal axis indicates the passage of time.
At the beginning of the curve, the phrase “Find the money” suggests the initial phase of identifying potential savings opportunities. This phase includes activities such as volume analysis and procurement behavior analysis, which are critical for establishing a solid business case. The emphasis here is on recognizing areas where cost reductions can be achieved.
As time progresses, the focus shifts to “Deliver the savings.” This phase involves the development of commodity strategies and the initiation of implementation activities, such as obtaining quotations. It’s about translating identified savings into actual financial benefits for the organization.
The curve then transitions to “Keep and identify new savings,” indicating a continuous improvement approach. This phase underscores the importance of ongoing efforts to secure and sustain savings over time. The slide highlights that this requires addressing procurement processes, organizational structures, and IT infrastructure, ensuring that the strategies remain effective and adaptable to changing circumstances.
In summary, the slide presents a clear roadmap for organizations looking to optimize their procurement strategies. It emphasizes the importance of a systematic approach to not only find and deliver savings, but also to maintain and enhance them over time. This framework can guide executives in making informed decisions about their procurement practices.
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.
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Procurement Strategy Continuous Improvement Cost Reduction Organizational Structure Business Case Strategic Sourcing
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