Consulting in Procurement

The managers come to us when it becomes necessary to put things in order in procurement – to find weaknesses in the function, reduce costs, achieve transparency and manageability, reveal fraud, and reduce manual labor. We create a procurement system from scratch or conduct an audit of supply chain and perform subsequent reorganization of the existing structure. Our clients are Russian, international commercial and state-owned companies with procurement budgets of 300 mln rubles a year.

We will help you beat competitors through optimizing procurement

77

purchasing categories we cover

22

consulting projects implemented in 7 years

get consulted

Projects implemented
in Procurement Consulting

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DIAGNOSTICS OF NON-COMMERCIAL PROCUREMENT

Large Russian company operating
in food products retail

11%

cost saving potential in terms of procurement

Before

  • annual costs exceeded 51 billion rubles
  • lack of responsibility of non-commercial procurement participants
  • numerous employees involved in procurement procedures
  • lack of total cost of ownership (TCO) approach in categories
  • complex processes: red tape, paper-driven document workflow
  • incorrect use of SAP
  • duplication of processes in different departments and formats
  • no strategic sourcing, or category management
  • lack of analytics and statistics by category

After

As a result of procurement consulting the client realized how to:

  • improve the quality of service for internal customers => support sales growth
  • speed up decision-making process by formats/departments
  • get savings of 10% while maintaining the quality of service
  • increase transparency: registers, catalogs, databases, available analytics
  • reduce paper-driven document workflow
TRANSPORT SERVICES

International manufacturer of insulation materials

117mln

rubles of savings per year

Before

  • total annual costs of 860 mln rubles, excl. VAT
  • varying contract terms and conditions
  • no unified tariff matrix
  • lack of transport during peak season
  • low competition
  • lack of analytical work by category
  • no market analytics for the transport services
  • absence of a strategy by categories

After

  • potential savings were revealed (up to 14% against the current tariffs or 117 million rubles per year)
  • understanding of costs by category
  • agreed ways to reduce costs in the category
  • defined and approved strategy by categories

We perform consulting in 77 categories

IT и телеком

— Fixed-line telephony
— Data transfer
— Managed Print Services (MPS)
— IT hardware
— Software
— Technical support
— Consulting and outsourcing
— Data center services

Raw materials and packaging

— Oil & Gas and petrochemicals
— Car industry and agricultural industry
— Retail and HoReCa
— Banks and financial companies
— Pharmaceutical companies
— Telecommunications
— FMCG
— Heavy and light industry
— Transport and logistics companies

Administrative services

— Courier service
— Office supplies
— Travel services
— Fleet management
— Safety and security
— Legal services
— Mobile communications
—Renting offices, commercial and industrial premises
— Document storage
— Transport for the personnel

Marketing

— Oil & Gas and petrochemicals
— Car industry and agricultural industry
— Retail and HoReCa
— Banks and financial companies
— Pharmaceutical companies
— Telecommunications — FMCG
— Heavy and light industry
— Transport and logistics companies
— Marketing research
— Service quality surveys
— POS materials and textiles
— Development of promo-sites, corporate identity, presentations

CAPEX и MRO

— Industrial equipment
— Spare parts
— Tools
— Maintenance and repair of equipment

Transport and logistics

— Long-distance and international transportation
— Consignment storage - fuel and lubricant materials
— Customs brokerage services
— Cargo insurance

HR

— Overalls and personal protective equipment
— Recruitment services
— Outsourcing: third-party services
— Personnel insurance
— MICE: meetings, programs, conferences, training

Construction and operation

— Maintenance of engineering systems
— Construction and erection works
— Utilities: electricity, gas, water, etc.
— Cleaning
— Furniture
— Repair and maintenance works
— CCTV, anti-theft equipment

The companies come to us when it is necessary to

Auditing Procurement function
Procurement department reengineering or development from scratch
Consulting in certain procurement areas
Survey and assessment of procurement department

The companies come to us when it is necessary to

Identify and eliminate risks

We make recommendations on avoiding contractual risks, risks associated with unreliable suppliers under the wrong schemes, corruption, and compliance risks.

Optimize procurement system

We help minimize manual labor, eliminate duplication of functions, avoid bureaucracy, improve quality of goods/services purchased with no increase in costs, decrease time.

Reduce costs and working capital

We perform audit and make recommendations to decrease costs/budget without an adverse effect on the business. We recommend how to reduce working capital by increasing deferrals and reducing inventory.

Achieve system transparency

We build algorithms and criteria for selecting suppliers. We help to increase system transparency. Managers get the opportunity to track all data on costs online within the system.

Our Advantages in Consulting in Procurement

1

We specialize in procurement

All areas of our work are related only to purchasing. We are experts in consulting, outsourcing, and automation in the field of procurement.

2

We apply international practices

We implement international standards and experience gained in dealing with the large Russian and international companies.

3

14 years of actual experience

We are trusted by customers with billions in budgets. Our recommendations are not theory and common knowledge, but a guideline to follow.

4

We use our own methodology and IT tools

We use five components in our work – category expertise, knowledge of processes, best practices, knowledge of IT-systems, ability to manage projects with big budgets.

What makes us different from international
consulting companies

The comparison is based on a review of sites, presentations,
communication with customers, personal experience.

Move the table

Customer needs

Competitors

Our company

Experts are required to conduct audit in procurement

Engaged in management consulting – management, sales, IT, HR and other areas. Consulting in supply chain management (SCM), which includes procurement as a small part. Use global experience without being adapted to Russian realities.

We perform consulting in procurement in 77 categories. We apply international practices taking into account the Russian specifics. We are the only company in Russia focusing on procurement exclusively.

Assistance in implementing recommendations and outsourcing in procurement is required

No outsourcing, only management consulting in procurement, which comes down to general recommendations.

We perform consulting in the area of procurement, we implement recommendations, we automate processes, we outsource procurement.

Ability to link cost to the outcome from consulting in procurement

Do not link remuneration to result. Work at a daily rate

We fix cost per project. Partially remuneration is linked to a result of procurement consulting

Sign up for a free consultation

We can perform the express diagnostics of your procurement processes. We will reveal the bottlenecks and point out improvement possibilities.

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