In the current climate, businesses cannot afford to have cost inefficiencies. Yet, there are significant savings to be made on third-party goods and services and, too often, these costs are overlooked. These costs could include rent or property fees, marketing and IT services or the cost of logistics and can make up a sizable part of a business’s overall spend.
Combining in-depth data analysis with our extensive expertise in procurement and proprietary digital platform, we create definitive 3rd party spend benchmarks for our clients’ procurement activity from which we can identify valuable cost saving opportunities. With this data-led approach, we are perfectly positioned to optimise operational activity, resulting in sustainable spending reductions, increased cost efficiency and enhanced profitability.
Our experienced 3rd party cost reduction consultants support our clients in identifying areas of third-party spending where there are opportunities for cost savings. We combine our consulting expertise with our digital platform, deploying data science and analytics tools to implement a strategy for delivering cost savings and adopting measures to ensure they are sustainable.
Profiling the categories
The first step in this process involves identifying the different types of 3rd party spending and profiling their activity. We help clients cleanse and transform data to produce an accurate picture of their 3rd party costs from which a detailed analysis can take place. This analysis is most effective when produced in collaboration with the relevant internal stakeholders.
Identify the supplier or sourcing options
Taking a comprehensive review of all the available sourcing opportunities, we work in partnership with our clients to review all potential options, detailing their deliverables, capabilities and costs. We also work with clients to run strategic sourcing processes, ensuring that they have the right supplier base at the right cost, while building better relationships with their suppliers.
Develop a 3rd party cost reduction strategy
Using the information gathered, we work with stakeholders and relevant departments to agree the priorities for cost savings across the different categories. We then support the business in establishing a cost reduction strategy.
Implementing the strategy
Working to the identified priorities, we deliver quick improvements in cost efficiencies for our clients, whether through renegotiating 3rd party contracts, utilising new 3rd party sources or adapting the deliverables of the product or service.
Tracking the benefits
Measuring the benefits delivered as a result of the 3rd party cost reduction strategy is a fundamental part of ensuring its success. Therefore, we establish key metrics that can be used to evaluate the areas of improvement and identify where action still needs to be taken.
Create sustainable action
For the 3rd party cost reduction strategy to be sustainable, all relevant departments must have the capability and motivation to continue to deliver the required measures. Communication is vital to ensure all stakeholders are on board and committed to the strategy. We also work with clients to upskill their in-house teams to ensure all personnel have the necessary skillsets and knowledge.
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The benefits of best practice
With our proven experience in delivering 3rd party cost reduction and our proprietary digital platform, we can ensure wide-ranging, sustainable benefits for businesses with improved cost efficiencies and profitability at the core.
Global, business-wide cost savings
Our extensive procurement experience across numerous sectors and countries means that the 3rd party cost reduction we bring to a company is comprehensive, stretching across all departments, categories and global locations.
Rapid improvements in spend
We bring a fresh perspective to your business activity, offering insight into potentially unconsidered areas where simple adjustments can deliver quick cost savings. While these benefits are often seen within a few months, our analysis is exhaustive, ensuring all potential opportunities are considered for long-term rewards too.
We always work closely with the relevant stakeholders within a business to ensure they are left fully equipped with the knowledge, skills and tools to maintain strategy implementation and seek continual improvement for sustained benefits in 3rd party cost reduction.
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Supply chain deficits, such as semiconductor and chip shortages, have had a huge impact on businesses in recent years.