Collaborative Sourcing

Sustainably reduce procured costs by jointly improving processes, optimising supply and establishing better planning and forecasting interfaces

In a competitive market suppliers’ margins can be as low as 2-4%, further negotiation on price has diminishing returns. Collaborative sourcing finds joint benefits up and down the supply chain for both the supplier and the purchaser. We work with you and your suppliers to stabilise your supply chain and deliver shared benefits by lowering procured costs for suppliers, delivering operational improvements to drive efficiency and productivity, and identifying opportunities for joint product and business development.

PIP’s methodology accelerates value delivery and validates that results are visible on your bottom line:

  • Identify target suppliers for collaborative sourcing
  • Agree with each supplier how improvement benefits will be shared
  • Conduct a short diagnostic with each supplier to identify and prioritise opportunities across their internal and external value chain
  • Define implementation plan and timeline (suppliers have the option to engage PIP to assist with implementation)
  • Consolidate supplier improvement plans
  • Establish disciplines and processes to deliver improvements

Additionally we maximise ongoing benefits by building continuous improvement skills in your procurement organisation.

The level of communication between the parties was low and the understanding of how to improve the situation was not there at all. The owner obviously knew they needed to do something and one of the somethings it did was hire PIP. A lot of things were done around how the contract was formed up to make it a win-win for both the client and the contractor. I can now see that I have got a team in the field that understands the objective: we can make the contract more profitable for our organisation, while delivering a better cost outcome for our client. I would definitely recommend the PIP process to other contractors in the future, it reaps real benefits. GENERAL MANAGER, CONTRACTOR TO PIP'S CLIENT

Meet our Collaborative Sourcing expert