Realise

If you don’t gain, neither will we. Our proven experience and expertise ensures we create and add value to our client organisations.

We work closely with our clients throughout the implementation and take responsibility for the actions that we recommend. If you don’t gain, neither do we.

As well as putting cutting-edge processes and technologies in place, we identify barriers and eithehr remove or mitigate them. Only then can procurement performance improvement occur and true business results be achieved.

Strategic Sourcing

Strategic Sourcing is a systematic and effective approach to address and develop specific purchase categories. The purpose of the work can vary, but usually it’s about reducing costs, increasing value and reducing business risk. Following a thorough purchasing analysis, our Strategic Sourcing framework usually covers the following:

•     Tailored strategic plan development
• Design of the most efficient and effective process
• Invitations to tender, negotiation and contract development
• Pilot testing the new process
• Measurement and monitoring of results – continuous assessment
• Implement plan
• Change management to facilitate the new process adoption

We have implemented the above framework in the majority of procurement categories and so providing us with an understanding of the challenges and opportunities with different types of purchases.

Meanwhile, we have created a useful and practical methodology that ensures successful results. Our ultimate goal with Strategic Sourcing is to go beyond creating temporary savings, we want to ensure processes are implemented and that they become embedded as part of our clients’ business culture and future long-term success of working.

Inventory Management

Purchasing Directions’s Inventory Management Analysis experts are masters at maximizing inventory mix and at anticipating the demands placed upon inventory. Our approach will thoroughly analyse the logistics chain and leave you with increased flexibility and lowered risk for the future.

Purchasing Directions’s Inventory Management Analysis includes the following services:

• Logistics Chain Analysis ―We will analyse each part of the logistics chain including assets, transportation, wholesale outlets and retail chains. Each stage will be thoroughly examined by experts and carefully analysed to improve the entire system.
• Inventory Management Assessment ― We will assess your bottlenecks and inefficiencies to prioritize the area’s that must be urgently addressed. We will also plan an inventory management strategy that includes your goals to maximize the growth of your business.

 Our Inventory Management Analysis Experts will focus on your firm’s requirements resulting from market demands. While inventory reduction is important, early-warning systems to prevent issues and provide quick solutions are the key to a successful programme which ultimately raises awareness within a company.

Offshoring

Moving operations offshore is a difficult business decision that, if implemented incorrectly, can have disastrous consequences on profitability. At Purchasing Directions we understand the geopolitical risks as well as the operational challenges involved. We maintain local knowledge of supplier, vendors and the competitive benefits of operating in a developing country.

Examples of specific services include market overviews and country services such as:

    Vendor and partner selection
    Developing localized engagements strategies
    Relationship and Performance management frameworks

Our unique commercial model

We put our money where our mouth is. We charge 50% of the savings we generate for our clients during the 'relevant period' (usually the first year following delivery of our results).

Our services are therefore fully self-financing and do not need a budget in the way that most investment does. Hence, our interests and our client's interests are perfectly aligned. We succeed and grow together.

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e-Procurement

RFI/RFQ/RFP & Supplier Negotiations

Category Management

Many businesses use e-procurement strategies to some extent, most lump e-Sourcing in under the terms wider umbrella of meaning: using the Internet to assist in the purchase of goods and services needed by a business.

e-Sourcing is a proven way for companies to save money. Companies on average are report between 8% – 24% savings and up to a 90% cycle-time reduction in the procurement process. The first thing a company must do to start achieving these savings is to set up an e-Sourcing plan. This involves choosing the right software, or building it in-house, training internal buyers on how and when to use it, identifying opportunities, and working with suppliers to train them and get their buy-in on the process.

Purchasing Directions’s e-Sourcing portal enables us to conduct the activities of our clients procurement lifecycle over the internet. Often a single one-off reverse auction event for a specific category, it provides an efficient, simple, and secure means for managing tendering activities by reducing the time and effort required for both buyers and suppliers.

The accomplishments of any business depend on the success of their supplier relationships. Purchasing Directions can assist your business in forming alliances with supplier organisations that share your company’s desire for quality and excellence.

We consider the following key factors when selecting a supplier/service provider for a client:

•     Quality of the product or service provided
• Competitive prices
• On-time, cost-effective delivery of products
• Technology infrastructure of the supplier
• Demographics
• Financial solvency
• Experience
• Environmentally conscious policies
• Flexibility

 We make every effort to ensure that a client’s procurement process is as quick and effective as possible. Moreover, at Purchasing Directions, we strive to increase quality and service while lowering costs. Therefore, we help seek suppliers for our clients that share this same awareness and that can demonstrate that their processes and procedures support a lower total cost of ownership to their customers.

We are used to dealing with strategic, highly visible, politically sensitive, and large transactions. From outsourcing contracts to direct purchases, our consultants are specialised practitioners of procurement process design, RFP construction, and evaluation / selection methodologies for RFPs. We can help answer questions such as: Is it clear what we want to buy? Will we get our desired business outcome? What strategies exist to pay for it?

From business case development through to post-RFP transaction planning, our RFP strategy and support services include:

•   Project scope definition
• Business case development
• Market consultation
• Risk assessment
• RFQ/RFP evaluation and design
• Preparation of RFQ/RFP documentation
• RFP process management
• Executive briefings
• Post-transaction planning

The total amount of the particular purchase for products or services determines the method of purchasing. Those purchase requirements that include a significant value require that a request for proposal (RFP)/request for quotation (RFQ) should be issued. And in those instances where the administrative cost for issuing an RFP/RFQ is not justified, verbal bids should be solicited.

Our sole objective is to deliver a successful business outcome. We have never had a legal challenge on any of our transactions. To get the desired business outcome, both parties must feel like winners. Many agreements evolve from the more traditional position-based approach which addresses the needs of one party, often at the expense of the needs and interests of the other party, thereby placing the initiative at risk from the outset.

Purchasing Directions’s approach to the negotiation of major projects agreements is designed to ensure a “win/win” outcome for all parties. Our methodology is designed to effectively address not only the required outcomes of a business initiative, but also each party’s interests and the motivations, which must be incorporated into the fabric of the agreement. We find that companies that use our more collaborative (versus adversarial) negotiation process realise greater value from their contracts. We have assisted our clients on such projects as the renegotiation of expiring agreements, strategies to deal with poor procurements or relationships, and mediation.

We can enable Category Management within your organisation and provide you with everything you need to deploy this highly effective methodology. For the uninitiated, Category Management is a technique that involves grouping together related products and services across a business and mapping them onto a supplier market. This means decisions about product purchasing, contracts, and which suppliers are used are made with a strategic view of the category, rather than departmental.

This mapping exercise is a significant piece of work, and support and understanding from all business service areas is required to capture spend accurately. Undertaking a Category Management approach is a challenging activity and Purchasing Directions’s seasoned professionals are well experienced to handle the task.

We can map a client company’s spend across a broad range of categories. This will be used to develop a more strategic company-wide approach to procurement. It may be advisable to concentrate on one or two high spend areas where procurement is currently atomised to find ‘quick wins’, however many client companies decide to roll out the process across all categories to maximise Return On Investment.

By analyzing detailed spend, transactional and pricing data, and continuously monitoring the supply markets, our dedicated category experts routinely identify and implement solutions to further reduce inconsistent purchasing and drive incremental unit-cost reductions through additional sourcing, appropriate specification changes, substitution, better demand management, and actively target cost-avoidance opportunities in appropriate commodities.

To further improve supplier compliance and performance, our seasoned Category Managers constantly monitor a number of key metrics and produce quarterly supplier scorecards to ensure your suppliers are performing at the highest level. The scorecards include spend, savings, transaction volume, and quality metrics such as:

•     Calculating spend vs. plan (compliance)
• Quantifying realised savings vs. plan
• Tracking electronic transactions (PO, POA, ASN, Invoice, Credit, Return) accuracy and timeliness
• Recording order fill rate, fill-cycle times, and freight-term compliance
• Identifying exceptions by type (damaged, incorrect items, overage)

Category Management support from Purchasing Directions delivers year-after-year cost improvements to help you maximise savings opportunities across all categories while focusing your internal efforts on larger, more strategic savings initiatives.