Business Process Assessment
The effective sourcing of products and services will bring immediate results to any organization. But for maximum impact to the bottom line, ACEC can perform a complete analysis of your people, processes, and technologies. In addition to the Expenditure Analysis, our Business Process Assessment includes:
- Contract Analysis
- Business Process Analysis
- System Workflow Analysis
- Total Cost Analysis
- Staffing and Skills Assessment
- Compliance Analysis
Contract Analysis
ACEC will analyze the terms and conditions of existing contracts, Statements of Work, Service Level Agreements, Key Performance Indicators, the compliance level, and the processes and procedures in place to manage these contracts. Current client processes and procedures are measured against Best Practices and a gap analysis is performed that will identify how effective current purchasing practices are inside the clients organization. ACEC can then offer recommendations on current industry Best Practices sourcing and contract management strategies that will directly impact and reduce your cost of operations.
Business Process Analysis:
ACEC will help you define the “as is” business processes surrounding:
- Material and services requesting
- The actual buying of all materials and services (both capital and expense)
- Warehousing, logistics (transportation), and inventory management
- Accounts payable invoice processing
- Check payment and reconciliation
- Supplier performance
- Contract utilization and supplier performance management
We then measure against best practices, perform a gap analysis and offer you process flows designed to reduce time and costs while meeting your vital business requirements
System Workflow Analysis
ACEC will then analyze your current systems to:
- Identify current capabilities
- Measure effectiveness against best practices
- Perform a gap analysis based on performance
- Determine your systems’ ability to support the proposed flows
- Provide recommendations on potential improvements
Total Cost Analysis
By further analyzing commodities, contracts, processes, and systems flow, ACEC is then able to develop a comprehensive total cost model, which typically includes the following components of cost.
Acquisition Costs
- Supplies
- Office space
- Equipment
- Services
- Wages and salaries
- General and administration
Product Costs
- Unit cost
- Transportation and internal delivery to the end user
- Installation, set-up, testing
- Maintenance repairs, parts
- Support materials
- Surplus value
Carrying Costs
- Warehouse expenses
- Insurance and taxes on inventory
- Cost of money
This model enables ACEC to identify and quantify additional cost reductions available for each product and service category and create further process improvement recommendations to reduce all direct and indirect costs.
Staffing & Skills Assessment
We can perform an assessment of your overall corporate procurement organization including:
- Corporate organizational structure by functional area
- Distribution of staffing levels and distribution of current procurement personnel
- Corporate reporting structure and span of control
- Personnel demographics including skills, experience, and education
- Current personnel roles and responsibilities
- Leverage of available resources across the corporation
We would then provide a report that would include our analysis and recommendation on how to best optimize your current corporate procurement organizational structure.
Compliance Analysis
After analyzing your procurement organization, we would analyze how effectively compliance is being managed within your organization to drive user adoption of contracts and programs.
This assessment includes analysis of:
- Current procurement policies and procedures
- Utilization of existing contracts
- Utilization of systems that can drive compliance such as electronic ordering systems
- Why business units do not utilize existing contracts and programs
Measuring these against supply management practices, we perform a gap analysis to develop recommendations to improve corporate procurement compliance. We summarize the results of each of these phases in our Business Process Assessment, which includes a high-level implementation plan.
Strategic Sourcing
ACEC can source commodities identified as savings opportunities either during our Expenditure Analysis as well as our Business Process Assessment. We recommend first establishing cross-functional teams comprised of our team leader and key stakeholders from the various business units impacted by the sourcing of these products and services. This team would assist with specification development and definition for the required products and services, and determine industry and supplier economics surrounding the commodities to be purchased. We can then manage the entire competitive bidding and sourcing process including:
Sourcing selected commodities
- Develop project schedule detailing all key milestones
- Develop Requests For Information (RFIs) to identify and select potential suppliers
- Analyze and score results of RFI, conduct facility inspections when necessary
- Develop request for quotations (RFQs)
- Develop and/or enhance standard Terms and Conditions
- Develop Statements of Work and Service Level Agreements
- Develop Pricing Matrices for all products and services
- Develop Key Performance Indicators and other supplier performance management metrics
- Identify and evaluate potential suppliers
- Manage RFQ process
- Analyze RFQ responses and develop recommendations and strategies
Develop and implement negotiating strategies
- Develop target pricing
- Develop negotiating strategies, goals and objectives
- Conduct sourcing negotiations
- Develop and issue recommendations for contract awards
Manage Transition and review first 30 days performance
- First Article inspection-manufacturing
- Service Levels
- Ensure standards are met or exceeded
- Implement contract management system
All of our services bring you proven experience, current best practices and processes for all components of your supply chain, and leading edge technologies. We always tailor our approach and recommended solutions to address your organization’s specific needs.
In the end, ACEC can develop strategic sourcing recommendations, quantify the savings opportunities available, and implement those recommendations