• Alexander Proudfoot Alexander Proudfoot

    MENU
    Proudfoot designs, implements and accelerates operational transformation - realizing tomorrow's results today. More About Alexander Proudfoot
  • Strategic Procurement

    Delivering Accelerated Results

    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.

    Typical Results

    Results you can count on
    What we can help you achieve

     

    • Process cycle time reduced 42%
    • Productivity improved 38%
    • Administrative costs decreased 20%
    • 55% order payment cycle time decrease
    • 5% decrease in maverick spend
    • 5% bottom line improvement
    • 20% increase in discount utilization
    • 30% reduction in prices
    • 36% decreased supplier base
    Additional Resources

    What We Do

    Your partner for rapid sustainable change
    The Path to World Class

    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.

    • Procurement Efficiency
    • Achieving world class strategic procurement
    There has been far too little progress in improving the efficiency and effectiveness of most companies’ procurement department. The lack of attention can be attributed to the tendency for companies to use the “squeeze technique” in their supplier negotiations. This approach ultimately does more harm than good, with unfavorable consequences for both the buyer and the supplier.
    By combining our knack for execution with unparalleled change management expertise, we help our clients build a world class strategic procurement infrastructure that sets these organizations apart from the competition.

    Client Results

    What our clients say
    “The constructive and results-oriented approach was crucial in helping us achieve our objectives.  We highly recommend Alexander Proudfoot as a business partner."
    Chief Executive Officer, Kühnle, Kopp & Kausch GmbH
    “With the support of Alexander Proudfoot, we were able to make real change happen, removing internal obstacles, which limited our progress and productivity.  As a result our design productivity doubled, engineering output dramatically increased and procurement costs were significantly reduced.”
    President, Torishima Pump, Mfg. Co., Ltd
    Project Results - Successful Past Projects
    • Cost reduction
    • Operation integration
    • Culture

    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: A manufacturing company had recently grown through acquisition and wanted to better integrate its operations.

    Approach: Proudfoot helped renegotiate existing supplier contracts and reorganize supply chain flows. A new stock management system allowed the company to identify consumption variances. Additionally, new  standards, indicators and daily reviews were introduced at all client sites.

    Results: The company was able to increase collaboration across five disparate companies and is now operating as one. The procurement function made significant gains in productivity and purchasing standards became an integral part of the company's culture.


    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.



    Areas of Impact

    • Life Sciences
    • Manufacturing
    The life sciences industry has experienced drastic growth in recent years. The key for success is for companies to change ̶ and quickly ̶ in line with the market. Our expertise in driving the rapid and effective execution of corporate strategy allows our clients to readily exploit every opportunity for growth.
    Given external pressures, the manufacturing companies that succeed in the marketplace are the ones that execute their strategy effectively, secure a competitive edge and realize the full potential of their business.

    Alexander Proudfoot’s is known for sustainable operational and financial improvement through disciplined execution, enabling our manufacturing clients to achieve their growth targets as well as revenue and profit goals with greater speed, predictability and control.
    Other Areas
    • Spend and supply base
    • Procure-to-pay
    • Ongoing supplier performance visibility
    • Governance and organization structure
    • SG&A