Procurement made easy
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- Helena Barnett
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1 Procurement made easy Strategic Sourcing: Streamline your processes, upgrade your skills and save money.
2 Transform your sourcing process from start to finish. An effective strategic sourcing strategy can significantly lower your cost of goods and build sustainable improvements in procurement and sourcing that translate directly to the bottom line for your entire business. Done right, strategic sourcing identifies gaps and eliminates waste in your process embedding value throughout your entire supply chain. Increasing prices from suppliers and shrinking budgets have companies trying to do more with less and this pressure can cause procurement officers to focus on immediate issues rather than seek out a long-term solution. Let us do what you don t have time for. ArchPoint s comprehensive strategic sourcing and training program will help you reduce your cost of goods and significantly improve value in just 2-4 months. a KEY BENEFITS Increased collaboration and communication Enhanced supplier relationships and market expertise Increased workforce skills, efficiency and effectiveness Standardized business processes Maintained workforce balance Reduced number of duplicative business transactions
3 Make your people and processes best-in-class. VISUALIZE // SOURCING ASSESSMENT AND TRAINING ARCHPOINT OFFERS TWO LEVELs OF best-in-class procurement assistance. You decide what level of assistance you need. We can either show you how, with our Sourcing Assessment & Training, or we can show you how and help you implement with our Vendor Segmentation & Sourcing Transformation. To best serve our clients no matter where they are in the sourcing strategy ArchPoint offers two tiers of sourcing assessment and transformation services. WE LL SHOW YOU HOW The first option trains your people to become masters in the art of negotiation and transforms your process into a world-class operation. It includes a complete assessment of your sourcing process to identify and understand both the departmental processes and personnel skill sets to determine gaps between current state and best-in-class. It also includes a comprehensive training program on how to close those gaps and improve the overall capabilities of your procurement team. ASSESSMENT INTERVIEWS GAP ASSESSMENT TRAINING Assess department, processes and procedures as compared to best-practice procurement processes. Conduct interviews with department staff to further assess individual skill sets and capabilities. Identify roles and responsibilities with the objective to eliminate work that doesn t need to be done and replace with new skills. Assess gaps related to both department and individual skills and capabilities as compared to best-in-class capabilities. Provide formal buyer training on how to prepare for a vendor meting, overcome objections and how to create win-win results. Includes a complete 10-step negotiation training process how to ask for more and get it, how to create a value proposition for you and your suppliers. PRICING Evaluate and update current price list to ensure profits on inventory. Consider ROI, EOQ, forward buy and supply chain least cost path.
4 Lower your cost of goods. Improve your bottom line. we ll show you how and help you implement. Our second option encompasses the assessment and training aspects of the first, but is focused on improving profitability through a complete transformation of your process. We work with you to align work activities to the procurement business strategy, assess your entire supplier base both domestic and international create a detailed plan of attack by key vendor and implement the plan for near-term results and long-term residual savings. ArchPoint s prioritized planning increases efficiency of your buyer s time and lowers cost of goods. VISUALIZE // VENDOR SEGMENTATION & SOURCING TRANSFORMATION THE NEXT LEVEL OF PROFITABILITY First, ArchPoint develops an understanding of your existing procurement business strategy and determines if work activities are in alignment. Next, we assess the entire supplier base and create a detailed plan of attack by key vendors to improve cost of goods. Implementation of ArchPoint s prioritized plan results in residual savings and makes for more efficient use of the buyer s time, ultimately leading to refined strategies for improved profitability. STRATEGY ALIGNMENT EVALUATION SOLUTION DESIGN SUPPLY CHAIN OPTIMIZATION Define sourcing strategy and goals, identify gaps between the strategy and existing operations. Create the case for change. Complete an assessment of departments, processes, people, skills, culture and metrics. Interview buyers and department heads. Create an individualized plan for top suppliers, both domestically and internationally if needed. Meet with these suppliers and explain the opportunity and new programs. Also develop plan for all other vendors. Develop plan to enhance the effectiveness of the supply chain including: plant direct or mixing warehouse, full truckload or LTL (less than truckload), supplier menu optimization, EDI (electronic data interchange) solutions, EFT (electronic funds transfer). All the way from plant to payment. IMPLEMENTATION & NEGOTIATION Provide formal buyer training on how to prepare for a vendor meeting, overcome objections and how to create win-win results. Includes a complete 10-step negotiation training process how to ask for more and get it, how to create a value proposition for you and your suppliers.
5 Our Goal: Delivering long-term, sustainable savings. ARCHPOINT HELPS SIMPLIFY YOUR SOURCING LIFE CYCLE. But don t take our word for it. Here s what our clients are saying about strategic sourcing solutions from ArchPoint. CASE STUDIES The approach to identifying our opportunities in our procurement department was great. They worked with each of our buyers to identify best practices methodologies, did a vendor segmentation and laid out a plan of attack for each vender and we lowered our cost of goods by over 2%. Mike Hodgens, VP Operations, Quali-Tech The strategic sourcing approach to our buying department met the objectives we had laid out. They did a process and skill assessment of the people and the department, identified the gaps, trained against those gaps and put together a process that lowered our cost of goods. We are enjoying the additional savings every day! Brian Holloway, CFO, Techniweld Discover Unexplored Opportunities ACHIEVE Operational Excellence SITUATION: A multi-divisional company had divergent internal procurement processes and procedures. Communication lines between Sales & Procurement were poor. Senior management needed additional savings to enhance its bottom line. ACTIONS TAKEN: Worked with the procurement staff and improved processes and procedures company-wide. Identified unexplored opportunities for savings through vendor segmentation and created a new strategy to lower cost of goods. RESULTS: Improved the cost of goods up to 5% per key vendor and instituted new marketing programs to drive additional sales. The company improved its bottom line and drove incremental top line sales by 2%. SITUATION: A Fortune 100 manufacturing corporation was not fully leveraging its size and purchasing power. Senior management needed and assessment of current processes and new techniques to lower cost of goods on key commodity items. ACTIONS TAKEN: Identified gaps in both skills of the sourcing team and processes. Implemented an online auction tool that was used for products. RESULTS: Lowered the cost of operations by $30 million, which dropped directly to the bottom line.
6 Turn to us for results. Rely on us for peace of mind. CONTACT US CORPORATE ArchPoint Consulting 1042 Camellia Blvd, Ste. 2 Lafayette, LA PHONE WEB archpointconsulting.com contactus@archpointconsulting.com
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