Heavy Industry

Reducing Costs For Heavy Industry Sectors

Phase 1 - Opportunity Assessment

Many organisations are unaware of the cost reduction potential that exists within their business. Typically much of the goods & services organisations purchase is either not under contract, or it has been a while since goods & services were competitively tendered.

With our heavy industry experience and proven methodology, we can quickly assess your business’ current situation and determine the cost reduction potential. We are constantly negotiating with heavy industry suppliers on behalf of clients, so we know the current market.

Our ‘Opportunity Assessment’ includes the cleaning up and categorisation of your spend data to provide an improved level of transparency. The final report provides the following information:

Detailed analysis of your spend data
Estimate of your savings potential
Stakeholder input and validation
List of cost reduction projects
Implementation plan
Implementation fees
Project ROI

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Phase 2 - Cost Reduction Implementation

When you have selected the projects that your company would like to implement, we then manage the projects with our experienced teams.

Project teams are established to ensure your key people provide the required input and endorsement at each stage of the process, and your executive governance group is put in place to approve all key decisions.

These projects typically include competitive tenders, supplier negotiations, process improvements, increasing working capital, and waste reduction.

We work closely with your procurement, technical, legal teams, and end users to ensure stakeholder buy-in and ownership of the project outcomes.

Our experienced teams also up-skill and mentor your procurement teams, so when we leave, your teams can effectively manage the new contracts and suppliers.

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Phase 3 - Contract Management

In our experience, companies typically do not manage contracts well, resulting in increased costs and exposing the company to commercial and legal risks.

Too often suppliers win a tender and then go through the honeymoon period of impressing the customer. This can then be followed by a drop in supplier performance, resulting in higher costs, supply risks, and reputation damage for the customer.

If you do not have the in-house capability and/or capacity to proactively manage the new contracts and suppliers, we can manage this process on your company’s behalf.

Our experienced teams will ensure that your spend is always under contract at market competitive rates, and your suppliers are performing to contracted levels.

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