Spend Management
A sustainable reduction in purchasing costs requires the involvement of the global procurement and capital markets
In most companies, purchasing constitutes by far the biggest cost pool. By implementing efficient Spend Management which takes into account expenditure over the entire lifecycle of a procured item (Total Cost of Ownership), you can achieve and make transparent savings which have impact on the income statement.
Falling margins associated with the increasing pressure of global competition, increasingly volatile purchase prices and the continual quality improvements in low wage countries are just a few of the challenges currently facing international purchasing departments. As a result, we need to rethink how we define suitable procurement strategies.
Instead of concentrating on the classic instruments for classifying and segmenting procurement expenditure, Spend Management represents a holistic management approach which addresses the various leverage possibilities within the procurement system.
Besides optimizing your supplier base and making more efficient use of internal and external information sources, the use of modern financial instruments is also taking on an increasingly important role among the repertoire of purchasing tools and methods.
Camelot will help you to implement sustainable Spend Management by identifying suitable strategies and assisting you during implementation in your organization, processes and IT.
At Camelot our main focus points in the area of Spend Management are:
Global Sourcing
A significant reduction of material costs by leveraging on new international procurement markets can only be achieved by establishing commodity specific and regional sourcing strategies.
Camelot supports you in identifying saving potentials, creating suitable sourcing strategies and in preparing and conducting tenders to bring potentials to the bottom line.
Our consultants support you with standardized tools and check lists, in-depth market expertise as well as with a broad range of experience from different international purchasing projects. We will help you realize bottom line savings and create transparency about your added value contribution in the company.
Managing volatile purchase prices
Significant price fluctuations of raw materials are increasingly endangering corporate success. To actively manage price fluctuations, commodity managers need to fundamentally revise their sourcing strategies, as classical procurement instruments like long-term delivery contracts are becoming more difficult to realize and only offer limited protection.
In addition to financial instruments, innovative inventory management strategies and contract types can provide protection against price fluctuations and add to your planning security.
Camelot assists you in establishing integrated raw materials procurement strategies - only the combination of various instruments will guarantee long-term success.
Spend Tracking
Company expenditures will be made transparent with spend management allowing you to make strategic decisions. The objective is to obtain an overview of what was purchased when, from whom, why and for how much. This especially includes expenditures for goods that are purchased “outside of normal purchasing channels” (maverick buying).
Camelot will support your procurement department in analyzing company-wide expenditures and in creating a valid data basis that allows defining specific commodity strategies and making well founded strategic decisions.
Our consultants’ know-how and long-standing experience will enable the best possible adjustment of your processes. The transparency created with spend management will form the basis for almost all procurement optimization initiatives.