Supply Chain and Procurement

PIP's procurement category savings average between 8-12% and in some categories reach 40%

Success in procurement is a combination of skill, experience, methodology, deep information, and commercial and operational savvy. Cost reduction is important, but not enough – and understanding impacts of supply on the operational economics, the importance of having a strong network of suppliers, and the value of a world-class procurement system and team is also important in any procurement assistance you seek.

Our procurement consultants bring these qualities to you, having decades of collective experience and amassed knowledge and Intellectual Property (IP). We transfer this throughout all engagements, coaching your team to sustain new processes and behaviours. This will ensure your procurement solution is not only effective but also sustainable in the long term.

  • PIP works with its clients to help reduce their cost base, strengthen their supplier base, and create a world-class procurement organisation
  • Procurement improvements can also result in product innovation, shorter cycle times, and increased throughput and revenue
  • Our procurement practitioners bring extensive industry, category and operational experience, which has been garnered from around the globe
  • We have a broad set of approaches that can be tailored to your specific sourcing needs, and a variety of fee structures including 'pay for results'
  • Our procurement methodologies are underpinned by extensive training of your team, ensuring benefits are sustained long term
  • A combination of formal training on-the-job coaching drives improved performance and ensures current and future sourcing savings are fully delivered and sustained

All this enables us to coach your people to deliver bigger, more sustainable savings faster than our competitors.

 

Commercial sourcing

A pragmatic approach to rapidly deliver significant cost reduction in complex spend categories. Commercial Sourcing targets known category levers to maximise value captured, with equal emphasis on price and usage.

It combines data analysis with insights from procurement and operations stakeholders to identify and deliver improvements. This accelerates delivery of savings, with first returns 1-2 months faster than traditional Strategic Sourcing approaches. Our experience shows cost savings of 10-38% are possible over a typical 12-16 week engagement.

Learn more about our work in commercial sourcing

 

Rapid Sourcing

The PIP Rapid sourcing model delivers quick savings through better pricing and terms.

PIP’s Rapid Sourcing methodology tackles the ‘tail’ of your procured spend through a highly accelerated sourcing process. Strategic Sourcing is too slow/uneconomic to apply to much of the tail. Yet cumulatively, the tail still represents considerable spend.

PIP invented Rapid Sourcing in the early 2000s to solve this problem – a rapid, process-efficient methodology to capture 80:20 savings from the tail spend. Our experience shows cost savings of 4-9% are possible over a typical 8-12 week engagement.

Learn more about our work in rapid sourcing

 

Collaborative Sourcing

Sustainably reduce procured costs by jointly improving processes/products, 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, and at worst, can destabilise your supply chain. 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 ensure the continuity of your supply, and we 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.

Learn more about our work in collaborative sourcing

 

Global Sourcing

Create and leverage a global supply chain to capture factor cost advantages. Substantial cost savings can be generated through leveraging global supplier capabilities.

Global sourcing introduces additional competition into sourcing categories, especially valuable where there are small groups of suppliers and limited local alternatives. Realising these savings in a rapid and sustainable manner requires a clear understanding of regional manufacturing capabilities, a robust process to select appropriate suppliers, and development of strong supplier engagement to ensure on-time, on-budget delivery of high-quality goods.

Learn more about our work in global sourcing

 

Procurement wiring / Organisational effectiveness

Embed the structure, processes and disciplines that create a highly effective procurement organisation.

Procurement ‘wiring’ describes the management processes, expectations and behaviours that determine how effectively a Procurement organisation performs. It is what drives your team to certain outcomes and ways of operating time and again. We start by assessing your current wiring, and then work with you to leverage strengths and address the gaps that create communication breakdowns, rework, misaligned priorities, missed expectations and other frustrations. Strong procurement wiring helps organisations get full value from supply contracts, improved performance from suppliers, and robust stakeholder engagement.

Learn more about our work in procurement wiring

 

Insourcing & Outsourcing

The decision on whether a process should be insourced or outsourced, and the effective management of these transitions, can be critical to the performance of the supply chain and the success of a business.

Setting up or changing your outsourcing is a major step that doesn’t always deliver what you expect. You may be considering change because outsourcing is not working well (maybe it never did) or internal/external circumstances may have changed sufficiently to warrant a review. Thorough analysis and deep commercial insight are required to select the right activities to outsource, choose suppliers, create the right commercial terms, and manage successfully. Once a sound decision is made, a detailed execution plan, tailored to the specific situation, will enable you to achieve the results you want. At PIP we are seeing an increasing number of clients looking to change their outsourcing arrangements, and we’ve found that a number of our tried-and-tested tools are helpful before, during and after the transition.

Learn more about our work with insourcing & outsourcing

 

Contractor management

PIP’s approaches to improving contractor management leads to improved performance, faster cycle times, lower service costs, and in many cases fewer contractors performing the same work.

Most organisations use a number of contractors to get work done. Often, however, these contractors are not tightly managed, and their costs are poorly controlled. In many instances, the business cases for outsourcing the work to contractors were not rigorously laid out.

PIP has extensive experience in effective contractor management through our continuous improvement work, and we can help you develop a professional system for managing your contractor workforce. We will assist you to achieve cost savings, better supplier/client relationships, higher-quality suppliers and reduced financial and safety risk.

Learn more about our work in contractor management

 

Supply chain optimisation

We connect users and suppliers across the supply chain and provide insight and solutions as to how a supply chain can be optimised and integrated with procurement and operations.

We work with our clients to agree on the key goals of supply chain optimisation, whether that be increased forecasting accuracy to prevent production outages, a reduction in working capital tied up in inventory, improved reliability of supply, or something completely unique to our client’s situation. By building a detailed flow model for inbound and outbound primary and secondary supply chains we can scenario test different hypotheses, structuring an implementation plan with both ‘quick wins’ and longer-term improvements. We also review the supply chain management operating system to identify gaps and prioritise the work required to create a ‘best in class’ supply chain operation.

PIP’s extensive experience in operations means we can bring a highly practical approach to improving your supply chain design and operation.

Read more about our work on supply chain optimisation

Meet our Supply Chain and Procurement expert