Particularly in companies which predominantly use indirect contracts for services and materials, the potential to add value to a well-functioning purchasing organization has long been ignored.

Increasing competitive pressure and falling margins in many industries mean that the reduced potential for savings both in purchase prices and in process costs is now an area of focus.  But where to start? Often, a lack of transparency surrounds the costs that can actually be addressed by the purchasing department – and the approach which needs to be taken in order to build up an effective purchasing organization on a step by step basis.

• Confusing cost structures which are not clearly allocated to categories of goods make it difficult to assess the potential for value creation through purchasing.
• Other specialist departments see purchasing purely as a procurement function which does not contribute strategic added value and mostly ignore procurement processes that are often only communicated in a half-hearted manner.
• Insufficient human resources and a lack of focus (the purchasing division focuses on C potentials instead of A potentials) mean that the potential performance of the purchasing division does not become apparent.

• Intero Consulting helps you to analyze and categorize your costs. Using an appropriate product category code, costs can be allocated and potential savings can be identified based on the experiences of other companies.
• If the main categories are identified in terms of their type and their scope, purchasing strategies specific to the product category can be developed which define the negotiation leverage, contractual options and the medium to long-term development focus.
• By mapping and measuring the current processes, inefficient activities are identified. Redesigning the processes and mapping them in a procurement process system revised in this way forms the basis for optimal purchasing performance. Outsourcing the procurement of C-parts can also free up additional resources.

• Transparency regarding the procurement volume and realistic targets with regard to the potential added value that can be created through purchasing.
• Planned, strategic approach to purchasing when carrying out procurement projects and increase in the potential for achievable cost optimization.
• Other divisions not only see purchasing as a source of support in cost reduction but also as a strategic partner in safeguarding against risks and deficiencies in performance on the part of providers.