In the last years, procurement has become a significant lever for managing risks in the supply chain, increasing company’s profitability by cutting costs, and generating liquidity by leveraging payment terms and reduction of locked up capital. Especially in small and mid-sized enterprises (SME) procurement is often underutilized as a value creation lever. Based on our experience procurement is more focused on operative day-to-day business instead of a strategic approach to contribute to value creation. Private equity (PE) companies with focus on SMEs are aware of procurement as an important lever to get the company more profitable, but are frequently not able to exploit procurement efficiently.
BCMC supports PEs as well as SMEs with a structured approach to identify and capture value potentials as well as empower procurement to contribute to the value creation process.
COMMON PROCUREMENT ISSUES IN SMALL AND MID-SIZED ENTERPRISES
- Fragmented information sources followed by major manual
efforts to create insights into spend
- Missing strategic approach to analyse and identify value potentials
- Underutilized procurement as a source to generate liquidity
- Lack of awareness of supply chain risks
- Focus on operative buying instead of strategic buying
- Unclear responsibilities in the buying process leading to
high maverick spend
HOW BCMC CAN HELP TO IMPROVE YOUR BUSINESSES
- Implementation of connection between data, systems & processes to create a single data repository
- Creation of transparency by visualizing key performance metrics in an automated fashion (reports/dashboards)
- Analysis the data along relevant value levers to identify improvement areas
- Quantification of cost saving potential: identification of quick-wins and long-term improvement potential
- Generation of a detailed action plan to realise cost saving potential; review and redesign of relevant processes and guidelines to make sustainable process improvements
- Implementation of initiatives with a structured approach keeping management in the reporting loop
- Implementation of a cost saving tracking tool to measure output
- Empowerment of procurement to contribute to the value creation process by providing all necessary tools and processes
Base Camp Management Consulting is experienced in working together with private equity investors and portfolio companies to achieve sustainable improvements in operating performance. For further information please contact us.
OUR CORPORATE PERFORMANCE
MANAGEMENT PLATFORM ENSURES
Does Your company face liquidity shortages due to high level of overdue receivables, too narrow payment deadlines or uncontrolled inventory? Do You desire a fully automated solution to increase efficiency in Your daily business? As a C-level or an investment manager, do You wish complete transparency of Your operating business to achieve the highest utilisation of operating resources? Don’t hesitate to get in contact now, to discuss how we together can professionalise working capital management at Your company. Effective and efficient working capital management constitutes a true competitive advantage of a healthy business. Act now to release complete working capital potential at Your company.