Methodology
The Red Procurement Methodology has been developed to be a straightforward practical approach to category management and sourcing. It has been designed by experts with both industry and consulting backgrounds, and reflects real situations and challenges faced in procurement, rather than being only a theoretical process which in reality is often difficult to execute. The methodology is broken down into four distinct phases:
Diagnose – establishing the dynamics of the category and ensuring that procurement is aligned to the wider organisational strategy in its approach
Plan – planning is key to the successful delivery of any sourcing initiative. By reviewing, challenging and testing the sourcing options, supported by high quality market intelligence, procurement can be sure its strategy is appropriate and aligned to the business needs
Deliver – providing a structured approach to the delivery phase, which provides the organisation with a robust basis for decision-making, this process is designed to be flexible enough to adapt procurement’s approach to benefits delivery, whilst meeting the organisation’s needs
Sustain – continuous review coupled with a supplier relationship management programme, ensures that the organisation understands and is able to measure the impact of its earlier decisions within the category, and maintains a level of insight both internally and externally
Delivering sustainable bottom line value
Diagnostics
Truly understanding how your organisation spends money is the first step to creating better value for you. At Red Procurement our powerful analytic tools allow us to take your raw data and convert it into information at the right time to support your strategic decisions.
An innovative approach – We believe a client-tailored approach nets a better result than off-the-shelf varieties found in the marketplace. Using our proprietary web based technology combined with multiple classification methods and matching criteria increases our ability to identify and classify supplier spend and provides you with a flexible and dynamic solution.
Having completed a thorough analysis of an organisation’s spend and engaged with key stakeholders, Red Procurement will gain an insight into your organisations supply base. This, plus our in depth category expertise and market intelligence, will enable us to identify and prioritise opportunities for you
Combining diagnostics with intelligence
Market Intelligence
Knowing what is happening in the market place enables procurement professionals and organisations to gain an in depth insight into their key areas of interest. Our network and information database enables us to source global market information which is then used to generate key market reporting empowering procurement professionals and organisations to make considered decisions on the timing and nature of their sourcing activity.
Key Information provided via our market intelligence suite includes:
Market Analysis – Focussed analysis providing an up to date overview of conditions and factors influencing the market such as exchange rates, commodity prices and trends.
Supplier Profiling – supplier review outlining the key suppliers and their performance within the market.
Benchmarking – combining our market and supplier analysis with our in depth knowledge to illustrate the market position and how further value can be driven.
Turning information into knowledge
Deep Category Expertise
We have extensive broad expertise across many industries and we can provide you access to a flexible resource pool of seasoned professionals who understand your needs. With our talent you can expect industry leading results, with a guaranteed return on investment.
Throughout the organisation we have extensive category expertise across many industries and we can provide you access to a flexible resource pool of professionals who understand your needs and have extensive knowledge of each specific category area. With our service offerings you can expect industry leading results, with a guaranteed return on investment combined with a team that understand your business.
Drawing upon their experiences derived from backgrounds with blue chip organisations and professional services firms our people bring a unique combination of category leadership through their day to day interactions and supported by proprietary processes and technologies.
Our category experts constantly monitor the latest trends and behaviours in procurement and supply chain to ensure they fully understand the internal and external market influences. Working across a number of clients they combine market intelligence and insights of the latest pricing, the supply base and innovations to ensure you are maximising your value return.
Providing expertise to maximise your return
Collaboration
We can facilitate co-ordination of clients to provide a collaborative approach/platform to discuss common points of interest i.e. externally or supplier facing. This can be clients of similar industries or non-competing depending on your objectives. Our aim is “value creation” and leveraging spend to achieve wider benefits
Our efficient and co-ordinated approach to supply chain management and vendor assurance will drive sustainable sourcing for you, working together enables discussion and agreement on common approach to resolving industry wide issues along with, the sharing of best practice.
We can help with the development and successful execution of complex sourcing strategies and recognise that building cross functional relationships and effective engagement in your organisation is a critical success factor. We start with stakeholder mapping / gap analysis to understand where your current relationships sit and identify where they need to be for successful delivery and implementation
Value creation through collaboration
Supplier Relationship Management
Our process is based on four fundamental principles to enable your organisation to derive maximum value from the supply base. We take a considered approach to supplier relationships to identify key partnerships that will in turn drive benefits such as innovation, improved supplier relations, value creation and environmental awareness. The four principles are:
Performance Management – managing supplier performance against a set of quantitative measures and working together within a jointly agreed framework of principles
Benefits Review – ensuring value delivery throughout the lifecycle of the contract through cost control, compliance management and value creation initiatives
Innovation – working in partnership to identify product, process and technology innovation to drive mutually beneficial results
Sustainability – developing an understanding of the environmental consequences of decisions made by the organisations, and identifying and implementing solutions to reduce the impacts
Maximising the performance of your relationships
Procure to Pay
Red Procurement realises that for organisations to impact their bottom line strategic procurement is not enough. Procurement departments must continually demonstrate a reduction of operating expenses and drive compliance across the business which is typically done by implementing best in class procure to pay processes.
Benefits of actively managing the procure-to-pay lifecycle include:
- Cost savings from spending less
- Cost savings from paying less
- Cost savings from automation and efficiency gains
- Cost savings form better visibility into, and predictability of, company spend
- Improved purchasing decisions
- Improved enforcement of internal controls
- Consistent purchasing processes
- Improved service levels to the business
- Faster communication
- Easier auditing
Here at Red Procurement we are passionate about procurement and have successfully re-engineered processes, policies and systems to support our clients requirements.
Providing support to deliver operational efficiencies
