Post by: King Siu, Communications Coordinator, PMAC

Most companies adopted “slash and burn” strategies over the last 18 months to deal with the pressures of the recent recession. In their morning session, Isabelle Leclerc, Senior Manager – Supply Chain, Deloitte and Mark Morrisey, Manager – Supply Chain, Deloitte shared more sustainable strategies for cost reduction that also support organizational growth.

Among others, one strategy they suggested for cost-reduction was adapting Deloitte’s approach to Spend Management for your procurement needs:

• Analyze Spend/Demand – Collect data (gather spend baseline and review contracts), confirm data with finance, analyze by category, leverage category expertise, identify patterns and trends in demand.
• Develop Category Profile – Analyze supplier market, develop requirements and specifications, identify vendors, identify savings levers and costs benchmarks, use industry expertise (innovative trends, competitive benchmarks, etc.)
• Develop Sourcing Strategy – Evaluate and select savings opportunities, develop detailed approaches, materials, negotiation strategy, decision criteria, implementation plan and process solutions; execute communications.
• Execute Sourcing Strategy – Conduct RFP/RFI process, lead response analytics/evaluation, recommend supplier, execute negotiation, develop/implement policy changes, end user communications, establish/renew supplier contacts.
• Execute and Monitor – Onboard new suppliers, develop benefits tracking process, monitor supplier performance, lead communications development and delivery, develop/track key performance indicators and benefits tracking process.

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