Alexander Proudfoot helps companies better execute their plans and strategies to deliver substantial improvements in performance and profitability. More about Alexander Proudfoot
The role of procurement in an organization has changed dramatically within the past few years. No longer is procurement simply a service organization that buys goods and services to address internal needs—the function now occupies a seat at the executive table as a strategic business partner.
Our approach to supplier relationship management is collaborative in nature and yields better pricing and superior results, which our clients translate directly into a competitive advantage in the marketplace.
Objective: Looking to reduce purchasing costs, the CEO wanted to leverage purchasing power between similar facilities that bought the same goods and services from the same suppliers.Approach: The project was centered around operational execution of the procurement function to improve the basic skills, processes and systems that could both drive out substantial purchase cost and also prepare the organization for a large-scale IT project. A joint team reviewed all budgeted and current outsourced work in order to identify opportunities for migrating contracted work to internal resources as well as defer or cancel work deemed non-critical to site operations.Results: The project helped the company reduce average costs by 15%, and formalize the procurement processes and activities across all facilities. Additionally, the processes are more formalized and buyers are now more pro-active when it comes to dealing with suppliers.
Objective: The Chief Executive sought to improve coordination and communication between different phases of the manufacturing process and strengthen the existing management techniques to align the organization. Approach: Proudfoot introduced best practices in order to encourage better communication. Additionally, processes and behaviors related to materials were aligned to ensure efficient use of materials. The team then increased schedule visibility to improve coordination between functions and ensure proactive management. Results: The organization achieved reductions in overtime expenses and external rework by 27% and 43%, respectively. Additionally, they were able to considerably reduce storage and transportation costs of finished goods.