Cost-reduction and growth opportunities associated with sourcing and procurement.
The advent of digital brings the potential for new strategies and approaches. But how does one make the most of innovation while continuing to deliver cost-effective, value-adding procurement and sourcing?Ellison offers end-to-end services that can address any aspect of sourcing and procurement, from strategy, organization, people, processes, content and technology. No matter what issue you are trying to address, it all starts with a good strategy. As trusted advisors, we help our clients devise procurement strategies that truly create competitive advantage. We support industry and enterprise-wide transformations in a way that integrates business, technology and operations. Ellison Strategy specializes in procurement visioning and strategy definition, including the impact of digital disruption and technology, value targeting by the function, blueprinting the future procurement operating model, optimizing spend demand management in the context of zero-based budgeting, strategic planning and sourcing for direct/core categories and supplier relationship management and risk strategies.
Transforming Sourcing & Procurement from Business Service to High Performance Driver.
Rapidly evolving technologies and the emergence of new business models are contributing to the sudden expansion in cost-reduction and growth opportunities around sourcing and procurement. Most businesses, however, are unsure about how to transform their procurement organizations to constantly reduce costs while maximizing value from supplier relationships.
1. Ellison Strategy works at the intersection of business and technology, connecting strategy to execution to deliver sustainable value. Within Sourcing and Procurement, we are especially adept at connecting the business function to an industry’s context. We understand the many ways in which sourcing and procurement in consumer goods is different from energy; we have people who are skilled in both—and 17 other industries as well. We also work across industries to find the best ideas and apply them to a specific industry’s needs.
2. Ellison Strategy connects clients with the right solution. We can help explore options for building or transforming an in-house function, integrating into a global business services model, or outsourcing parts or all sourcing and procurement activities. Because Ellison offers both make and buy solutions, we bring a balanced and unbiased perspective to the table to ensure our clients end up with a solution that is right for them.
3. Ellison Strategy connects ideas with execution. Through our global peer network of over 200 CPOs, we connect sourcing and procurement executives with each other to exchange ideas and insights. And we stay closely attuned to the innovations and work from our technology alliance partners, from established leaders like SAP/Ariba and Emptoris to up-and-comers such as Coupa and Sievo.
Through visionary research, our client experience and our vast network of expertise, we are always looking to advance the collective knowledge and innovation around sourcing and procurement.
We help our clients devise procurement strategies that truly create competitive advantage, supporting industry and enterprise-wide transformations in a way that integrates business, technology and operations.
Procurement Strategy: rooted in our deep research on High Performance in Procurement as well as the Future of Procurement, we work with our clients to envision where their procurement organizations will evolve to over the next 5 – 7 years. This research identifies the most important capabilities required to outperform the competitive peer-set, and helps clients set procurement strategy including procurement functional considerations as well as delving into the IT and Digital strategies required to achieve the objectives of the evolving organization
Procurement Value Targeting: as part of an overall Operations value assessment and in line with overall strategic procurement goals, we identify opportunities to improve total value of ownership by reducing overhead expenses and COGS; increasing revenue and developing new cash flow streams through supplier innovation; reducing environmental and community development costs; decreasing working capital and minimizing risk. This is accomplished through proprietary procurement techniques, such as deep benchmarking in closed loop spend management with zero-based budgeting, merger & acquisition clean rooms, and strategic planning & sourcing of core categories.
Procurement Operating Model Blueprint: The procurement operating model blueprint properly maps how a client’s procurement organization will operate across their organization, process, talent, and technology (and digital) landscape in order to implement their strategy and achieve the targeted operational and financial improvements.
Supply Base Management: Implementing supply base management assists clients in managing their strategic and transactional suppliers to gain the optimum value per supplier segment, including for example improved yield from supplier collaboration and innovation or operational efficiencies. This is achieved through supplier segmentation, supplier development, supplier innovation / collaboration, and ongoing performance management (and more). Beyond the existing supply base, we also work with clients on methods to discover new suppliers to meet the evolving demands of their business.
Risk Strategy: Developing appropriate risk strategies to manage supply and commodity volatility risks throughout the lifecycle of the supplier relationship. We also work with our clients to identify risk strategies for managing new suppliers as their business evolves.
Strategic Planning & Sourcing for Core Categories: Forming the holistic vision of how to deliver the greatest value for each core spend category and defining a plan to achieve each category’s desired result through the strategic category plan (e.g. improved quality, improved cost, rationalization opportunities). As defined by the category strategic plan, this may include the strategic sourcing and product cost management of core categories.
Demand Management / Zero-Based Budgeting (ZBB): to achieve SG&A cost reduction visible in the bottom line, we work with our clients to define smart consumption policies to optimize spend, and architect the necessary zero-based budgeting, control, and monitoring processes to affect real and lasting change in spending and consumption patterns.