Analysis and Recommendation
An analysis of the existing situation is the primary step and
would include a review of current suppliers. Benchmarking and cost
comparison will be performed in conjunction with the scrutiny of
product standard and supplier service levels.
Overview of Process
The client's bought ledger is analysed initially to identify key
suppliers. Purchasing statistics are then obtained from suppliers.
It is understood that not all suppliers will be able to supply computer
driven invoices and if that is the case then historical hard copy
invoices are obtained & consolidated into a statistical profile.
Once this has been done and true product costs have been established
this will be compared with the level of service given by the supplier
in order to calculate average delivery values and hence the most
likely distribution method whether wholesale, chill chain or contract
Benefits / Results
True cash savings are identified. By default the number of suppliers
existing on a bought ledger system is reduced with subsequent cost
savings & formal supplier relationships are initiated.
Who would benefit
Any company which requires an objective analysis of their operations,
but in particular companies which are growing and realise that they
operate on a bigger scale than they did some years before. A growing
company will need to take stock and to initiate disciplines in order
to continue to grow larger, as there is a point when a certain critical
mass is achieved and change becomes essential in order to for the
growth to continue.