PURCHASING
More than two thirds of a company's added value, regardless of their sector of activity, depends on suppliers. Therefore, the performance of the purchasing function goes well beyond the act of negotiation.
Cost House considers suppliers as “external resources” which contribute to value creation. Accordingly, we support our customers on various levels :
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Organisation and process
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Understanding of suppliers' cost structure
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Purchasing strategy
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Collaborative “Design to Cost”
Cost Engineering
PURCHASING PERFORMANCE DIAGNOSIS
YOUR AIMS
Learning quickly
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Within 6 weeks, have a mapping of the strengths and areas for improvement of a purchasing organisation, supplemented by a proposal for concrete action plans
OUR EXPERTISE
An “industrialised” approach which enables a large capitalisation on 6 main axes of analysis
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Organisation & processes
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Category Management
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Suppliers panels
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Management of Purchasing Performance
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Assessment of practices' maturity
YOUR DELIVERABLE
A detailed diagnosis report
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Clear mapping of expenses and potentials
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Matrix of practices’ maturity
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Proposal of action plans
Competitiveness Improvement
DESIGN TO COST FOR SUPPLIERS
YOUR AIMS
Reduce costs by maintaining your suppliers' margins
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Collaborate with suppliers to find technical solutions that meet needs at the right cost
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Engage or maintain a lasting “win-win” relationship with the best suppliers
OUR EXPERTISE
An innovative approach relying on software solutions, from the selection of relevant partners to the implementation and based on the 3 axes of Design To Cost :
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Technical
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Functional
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Systemic
YOUR DELIVERABLE
Quality and performance at lower cost
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6 to 12 month projects
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Costs reduced by 10% to 30% at ISO or better performance
OPTIMISATION ORGANISATION AND PROCESS
YOUR AIMS
Defining a more efficient organisation adapted to your environment
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Aligning the organisation with the purchasing strategy
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Ensuring the organisation’s overall competitiveness is secure
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Integrating “category management” into teams’ daily work
OUR EXPERTISE
An alternative vision of organisation projects
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An approach based on client expectations as well as on the organisation's economic performance
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An approach relying on software solutions which allows us to focus on the important dimensions: aligning with the purchasing strategy, exchanging with teams, discussing consumer motivators, and using the economic simulation of organisational scenarios to facilitate choices
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The construction of a target that capitalises on good market practices and the cost model of the support functions of the DFCG.
YOUR DELIVERABLE
A structured approach that reassures stakeholders
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A first diagnostic phase which covers the mapping of the organisation and existing processes, the interview of internal teams and clients, and the macro-modelling of costs by each of the organisation’s activities
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A second iterative phase combining framing workshops with management, work on skills and processes with teams, and analysis of the value for clients
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A third phase of formalising and deployment: generating organisational charts, updating skills repositories, a tooled generation of job descriptions, change in management and planning
SUPPORT FOR PURCHASING OPERATIONAL EXPERTISE
YOUR AIMS
Improving sustainable purchasing performance
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Supporting your teams operationally
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Training in good practices in contact with an expert
OUR EXPERTISE
Proven tools and methods which rely on software solutions
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Category management
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Supplier costing
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Optimisation of the supplier base
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Design-to-Cost suppliers
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Demand management
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Management of competitiveness improvement
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Organisation and process
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IF Purchases
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Benchmarks
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All our consultants asked to work on expertise missions have a strong operational experience prior to their career in consulting.
Simulation
PURCHASING STRATEGY
YOUR AIMS
Aligning purchasing with company strategy
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Defining a purchasing strategy that can be read by stakeholders
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Developing a clear action plan for the teams
Acquiring the associated managing tools
OUR EXPERTISE
A structured and pragmatic approach
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A structured and pragmatic approach
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Alignment with corporate strategy
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Mapping & segmentation of expenses - Category Management
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Cost structure & driver trees
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Risk assessment & market studies
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Supplier relationship strategies
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Supplier panel strategies
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Formalisation of purchasing strategies
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Management of the deployment of purchasing strategies
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New industrial sites
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A pragmatic approach that combines traditional methods (detailed technical analysis, value analysis) and innovative ones (systemic modelling having received CIR approval)
YOUR DELIVERABLE
A formalised and rolled out purchasing strategy
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Detailed description of the purchasing strategy document
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Communication media
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Variation in action plan
MANAGEMENT AND MEASUREMENT OF PURCHASING PERFORMANCE
YOUR AIMS
Adding value to the work of purchasing teams, in line with the financial vision
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Integrating all the dimensions of purchasing performance
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Defining the rules for calculating earnings and the terms of reconciliation with finance
OUR EXPERTISE
Providing our dual expertise in purchasing-finance
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Structuring of concepts of expenditure, addressable expenditure and addressed expenditure
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OPEX/CAPEX variation
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Structuring of categories of gains: commercial gains, demand management, technical gains, impacts on market conditions, contingencies, etc.
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Definition of calculation rules
Integration into the IS
YOUR DELIVERABLE
A shared vision of purchasing performance
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A detailed, transparent purchasing performance monitoring system accepted by all stakeholders (clients, purchasers, finance, general management)
SOFTWARE SOLUTIONS
Professional Services Automation
Activity Based Costing
Simulation
