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Purchasing basics – the new modern?

Food4Thoughts

Permanent crisis management in purchasing, triggered by markets changes, global crises, and special effects consume many of the available resources. During crisis management, root causes of all this troubleshooting gets out of sight. Existing purchasing strategies and basics, considered as mature and resistant, appear to be weak and unable to manage the risks.
 
We know how to bring you back on track. Sustainably!

Not exciting, but crucial for success – purchasing basics

It is nothing new that purchasing is responsible for the majority of product costs. Consequently, the professional management of material costs is the most important factor in keeping companies profitable. Hot topics such as Covid-19 and current supply chain crises have highlighted the importance of strategic and professional materials management – Simplified: Purchasing basics.

Poor maturity level in purchasing basics costs millions

For decades, the constant launching of new hot topics has determined the actions of companies. The time to consider purchasing basics is limited. Asking companies about purchasing strategies, the majority already declare them mature and fully implemented.

 

However, our project experience shows that strategy basics are immature, developed for the books and often only empty words.

 

Many companies struggle with the basics, not because of the crisis.

Surveys indicate medium-poor level of Maturity in Procurement Strategy

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Following the “holy grail” or refocusing on the important issues?

Permanent crisis management triggered by market changes, global crises and special effects consume a large number of the available resources in purchasing. The management of daily business is neglected, and the already weak structures and toolsets lead to threatening effects. But how can the basics be improved without ignoring the crises? How can the environment be stabilized, and further crisis impacts mitigated or avoided?

Do both - Professionalize the basics to create spaces for hot topics

To overcome the challenge to do both, it’s about:

  • Considering material cost management as a companywide task and ensure fact-based strategy development
  • Implementing cross-functional purchasing strategies and link them to daily business
  • Applying a preventive risk management incl. strategic action plans to mitigate and overcome supply risks and be prepared for the uncertain

World class companies outperform on three strategic fields of action

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Purchasing basics

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Purchasing is the strategic function to secure the competitiveness and profitability of companies. Without a goal-oriented, sustainable definition and operationalization of purchasing strategies, purchasing results remain below expectations and the next crisis dominates you, not you the crisis.

 

With hundreds operationalized strategies, we have a proven track record to bring your purchasing to the next maturity level.

Speak to an expert

Working with the most qualified Tsetinis Consultants is key to your success.

 

Speak with an expert in your industry who can help you move your company toward your specific goals. We implement our expertise in a very specific and targeted way and tailor the choice of methods to your individual requirements. In this way, we can ensure your long-term success.

 

Get started now!

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Martin Kruschel

Partner

Materials Management

Product Profitability Programs

Restructuring & Organizational


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Dr. Kenneth Sievers

Senior Principal

Materials Management

Post Merger Integration Programs

Profitability Programs


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