Procurement Diagnostics

For most organisations, third-party expenditure represents the largest business cost an organisation will incur. Which means this expenditure needs to be managed in a professional manner.

A procurement diagnostic, from Effective Purchasing, provides management with a concise report detailing how procurement is managing this expenditure and where improvements can be made. Where procurement performance is concerned, some organisations rely purely on financial metrics to understand the current situation, but financial metrics alone rarely show the full picture.

Effective Purchasing have developed a range of diagnostics; ranging from a review of the complete function to a review of how a key category is being managed. Effective Purchasing have the expertise to tailor the diagnostic to the culture of the client and the overall business needs.

In the past our findings have resulted in additional or new value streams being unearthed that have enabled our clients to make real and substantial savings.

Some examples of Diagnostics offered by Effective Purchasing are shown below:

• World Class Procurement - How does your procurement function compare against our World Class Procurement benchmark? A full function review.
• Procurement Healthcheck - How effective is your procurement department? A review of the procurement department, and related departments, from a process and operational viewpoint. Our detailed report includes a comprehensive opportunity analysis that identifies where the ‘quick wins’ might lie.
• Contract Review - Are your major contracts delivering the ’value for money’ they should? Are you vulnerable to supply chain risk? Our full contract review looks at various aspects of the buyer/seller agreement from value for money through to termination rights.