Purchasing Management

Scandinavian Purchasing Groups has an extensive experience in managing Purchasing Efficiency Programs for national and multinational companies. Trough a systematic approach to the purchasing portfolio we are able to detect potentials for improvements and cost reductions, and further to develop and implement an action plan to collect the potentials.
Scandinavian Purchasing Group has a proven track record for cost savings resulting from purchasing efficiency programs and normally we identify potentials in the range between 5 and 50% of total purchasing cost.
A purchasing efficiency program will normally include:

Supply analysis
To assess the client’s potential for cost reductions and performance improvements, Scandinavian Purchasing Group carry out an analysis to determine the client’s present status compared with “best practice” on key performance indicators. The Supply analysis includes a study of the client’s financial records and other relevant background documentation, e.g. standards, relevant procedures and contracts.
Further, Scandinavian Purchasing Group will interview key personnel to verify the purchasing process. Based on the collected information, we will be able to assess current status, quantify cost and improvement potentials and propose an action plan to collect these. This analysis will be carried out during 5 to 8 weeks and a detailed and well documented report will be presented to the client.

Quick wins
Based on the Supply analysis and clients approval, Scandinavian Purchasing Group will participate in the implementation phase to collect the savings. In the initial phase of the implementation, we will focus on “quick wins”, i.e. actions that will result in cost savings for the client early in the process. Typical actions implemented in this phase are renegotiation programs, introduction of multidisciplinary purchasing teams and sourcing of non-critical material and services. A system for measurement and reporting of achieved results will be implemented. Further, a competence program will normally be initiated in this phase. Typical duration will be from 4 to 8 months.

Long term savings
In phase 2 of the implementation, we will focus on long term savings and process improvements in the organization. Typical market oriented actions may include re specification programs, sourcing of strategic material and services. Internal actions may include organization, systems, tools and specialized competence programs. Typical duration will be from 6 to 12 months.

Transfer of competence
Scandinavian Purchasing Groups will focus on transfer of competence to the client’s own organization in all phases of the project. This will be done through seminars, practical training and coaching. Further, we will establish a set of key indicators for the purchasing function. This will enable the organization to continue the improvement process and monitor the cost development in the company.