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Saint George Institute

 

PROCUREMENT EXCELLENCE PLAN

 


 

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OBJECTIVES OF THE PROCUREMENT EXCELLENCE PLAN :

 

 Reduce the overall volume purchased and reduce the number of suppliers;

The total volume of purchases is generally between 35% and 70% of sales, and although non-production purchases are generally less than 20% of sales, this is an area where spectacular savings can be very rapidly achieved.

  Reduce inventory levels,

  Improve the quality of production and supply, thus improving client satisfaction,

  Improve innovation cycle speed and effectiveness,

  Improve administrative processes quality and reduce their cost.

Any corporation or institution can obtain fast and substantial benefits from the "Procurement Excellence Plan", even with specific ERPs or Procurement software installed.

 


IMPLEMENTATION  OF THE PROCUREMENT EXCELLENCE PLAN :

 

There is no such thing as standard recipes or universal best practice here. Every corporation is a different case calling for different solutions.

Very often production purchases will be reasonably well organised and effective, whereas non production purchases are lagging far behind.

The "Procurement Excellence Plan" starts with a short  assessment performed by one of our experts.

We then provide a suggested action plan to address problem areas we have detected. If we agree on the plan, we start working on major potential improvement areas in one of two ways :

      one of our Procurement Experts will coach and supervise client employees between one and two days a week,

      or we form a small task force with one or two consultants and client employees, managed by one of our Procurement Experts, to work on the project during the agreed implementation term.

 

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