Below you'll find a list of all posts that have been tagged as “procurement”
With many predicting a dire future for physical shopping outlets, 4C Associates’ Milan Panchmatia explains why shops will continue to play a key role in retail strategy. There is no denying the huge impact online retail has had on bricks and mortar shops, however, that does not mean there is no place for physical store fronts in today’s world. Nowadays …
In recent years, procurement functions within the private sector have recognised the value of cloud technology and solutions, to the extent that procurement can play an integral role in the organisations move to digitalisation. This involves utilising cloud Procure to Pay (P2P) and Source to Pay (S2P) solutions to drive value for money. Despite the benefits reaped within the private …
As procurement professionals, we frequently come across a view that negotiation is the core of our job – at times it’s even the only thing we are asked to do! Our stakeholders (managers of finance, operations, engineering, marketing, and other departments for whom we buy) see us as expert negotiators. Just picture a typical situation: a fleet director agrees with …
I was fortunate enough to attend the recent Procurement Leaders Dinner, which was an excellent event to showcase procurement at the ‘top of its game’. It leads me to wonder why our leading lights of the function have been successful in their enterprises, especially as most of the winners were truly focussed on transformation and creating business value. The attendees …
Businesses who aren’t paying attention to how they can learn and exploit the insights generated by behavioural economists, should expect to fall behind to those that do. BE insights focus on decisions we make under uncertainty i.e., most of the time. When we shop for example, there are so many different products available, that it’s impossible to objectively know the …
Operational change is vital for any business that wants to stay relevant, especially in times of economic uncertainty. It is equally important in the realm of Private Equity, where acquisitions and accelerated organisational change go hand in hand. Competitive industries demand continuous innovation and changing market forces cannot serve as an excuse to delay necessary transformation. However, managing the need …
With more and more companies transforming and digitizing the Source-to-Pay (S2P) process, the demand for a tighter supplier enablement during an S2P process is also increasing Within S2P implementations, the supplier enablement process is often overlooked or underestimated. Companies do not always seem to be well engaged with their suppliers. Of course, they have a “very good relationship” with their …
At 4C we often get asked to evaluate whether our clients’ third party spend is being spent in the most optimal manner and to recommend ways of making it better. While undertaking such an analysis, we challenge the spend, using our “Control, Optimise and Transform” model, from multiple perspectives e.g. price benchmarking, inhouse/outsource, process simplification, specification optimization, service mix etc. …
There are a number of different methods that companies can use to measure marketing performance. A good way to think about these is to divide them into three categories – Advertising Performance, client Account Performance and Business Performance – these then cover all the metrics considered to be of key importance. As part of your regular advertising activity you will …
From risk management, to fostering innovation and refining supply chains, procurement professionals have arguably never been as valued as they are today. Despite this, there remains much to be done for the function to secure its position at the board table. Procurement as a career path is still in its infancy compared to other more established functions, such as accounting …
I wrote a blog about deadline day buying about 5 years ago. This was mostly about how timing plays a key role when it comes to determining the balance of power between buyers and suppliers. Suppliers will be quick to take advantage of any time related issues facing a buyer. However, by employing effective contingency planning measures and ensuring alternative …
In the fast moving FMCG and retail market, responsiveness and speedy time-to-market require very lean and quick processes. While this is not a ground-breaking observation, it is surprising how many FMCG and retail firms still grapple with running streamlined operations to allow them to do just that. Depending on the respective market positioning, a reactive stance to the latest trends …
Everyone is in awe of the price of $400m commanded by Leonardo’s masterpiece Salvador Mundi. However, the more interesting debate is whether it’s just down to Leonardo genius or the brilliance of Christie’s? If this is just down to the auction method where competition got the best price, my question is whether running an auction on Ebay, which also happens …
For many years, leading organisations have understood how Procurement can help define a successful business strategy. Modern procurement functions have a holistic view of their organisations, sectors, and changing market conditions. Spotting opportunities, solving challenges and refining processes are the bread and butter of modern Procurement functions. To the point that in many organisations there is a strong direct link …
Sales growth is struggling, in fact a 0.8% fall in September in the UK, inflation at its highest level for five years, pressure on retail procurement is growing and still retailers are resisting being the first to increase prices. Grocers are laying off staff, high streets are decimated and charity shops are becoming more prevalent. Over the past 12 months …
4C Associates’ Joe Temple considers the applications of AI in procurement. How much does it cost to store a gigabyte of data? In 1980, the answer would have been hundreds of thousands of dollars. In 2017, the figure is closer to one cent. Improvements in computing efficiency have made it much cheaper for businesses to store and process data. Thanks …
Most executives in the PE world understand that procurement helps embed commercial discipline within an organisation by managing its spend patterns and behaviours. The more robust its policies and processes, the more this value is reflected in the bottom line. But there’s a bigger reason behind procurement’s appeal, and that’s because it can be easily leveraged to deliver significant EBITDA …
Businesses today are undergoing massive changes as a result of three enablers: Globalisation, Technology and Supply Chain. This trend is most evident in the retail industry where globalisation has allowed products to be designed for global taste and be produced at the lowest cost; and supply chain fundamentals have supported businesses with flow of goods, information and money. Technology, on …
Be honest, how rigorous is your operational due diligence at bid phase? It seems that the reality is that the business mantra of ‘plan for the worst and hope for the best’ seems to be one that is conveniently overlooked when assessing pricing decisions in a market where a 15% acquisition success rate is viewed favourably and risks feel like …
Mid-market private equity owned organisations usually have a short history of rapid growth or intensive merger & acquisition / bolt-on activity. Their next phase of growth is usually based on product or regional expansion and whilst investing in this approach it is vital that cost control is not forsaken. If, and it will be a nice problem to have, growth …
If the last 12 months have been any indicator, the only certainty is that we can’t be certain of what will happen in the months and weeks leading us up to March 2019. This said, if the current situation offers us any clues, we should be prepared for the possibility of a post-Brexit-Britain without a Free-Trade deal with the European …
I am often lost for words when watching how football clubs must undertake player negotiations so publicly in the face of influences such as fan opinion, agents, China, the media and the high levels of supplier dominance that some of the truly top players have. Clubs are still making profits even in this time of inflationary salaries thanks to investment …
Supply chains have now evolved into complex beings, which are networked at multiple levels. These “supply networks” are complex not just in terms of the number of entities, but also in terms of their length. It is not surprising to see these modern day networks extending across the globe, delaying the process and information flows involved. To worsen the issue, …
Against the background of a ticking two-year clock, this analysis will argue that Brexit will reshape the UK Retail landscape by shuffling the cards once more. There are 3 key Brexit-related challenges facing retailers: Currency and financial movements This is an effect that has already been hitting retailers operating in the UK. Movements of exchange rates outside of their typical …
With its latest move into the Far East, 4C Associates – a leading European procurement consultancy specialising in cost reduction and transformation – is proactively pursuing a fresh approach to end-to end consultancy solutions. With an established reputation and experienced team of 100+ consultants in London and Amsterdam, 4C works with a variety of top tier clients to help them …
The June 2016 referendum brought to life even the sleepiest of the analysts, with everyone having their views on how Brexit would reshape the UK economic and social structure – most of them predicting a severe and immediate impact. The more structured arguments signalled immediate impacts on services (Forex, stock markets), near term impact on movement of goods (tariffs, import/export) …
When the UK submitted its Article 50 letter to the European Commission, it set in motion a series of events that cannot now be stopped unless there is specific agreement from both the European Union and the United Kingdom Government. At the end of this two year period the UK will have formally left the European Union and will either …
4C Associates’ Jack Greenwood considers how the Conservative Party’s Manifesto could impact M&A activity and lead to Procurement playing a growing role in Private Equity. Following the Conservative Party’s troubles during the Snap General Election, Prime Minister Theresa May will move to turn things around by implementing her party’s Manifesto. One key aspect of this document looks to block Investor …
Despite a reputation as a simple cost-cutter, Procurement can and should contribute more within the realm of Private Equity. A modern Procurement department can balance cost optimisation and growth enhancement to deliver increased value to Private Equity boardrooms and actively shape a business’s strategic direction and competitive differentiation. When the goal is to grow top-line revenue, as it often is …
“Lower for longer” has been a well-worn phrase in the oil and gas industry since the latter part of 2014. Not only does it describe the fact that crude oil prices have been significantly depressed since then, but it also signifies the change of mindset the industry and its supply chain has had to wrestle with in that time. This …
Milan Panchmatia considers whether procurement departments should be focusing on recruiting candidates with soft skills over those with academic credentials. Few would argue that hiring a candidate based purely on their academic achievements is a good idea. Anyone who has managed a team knows that multiple elements need to be taken into account before recruiting someone. This is especially true …
Despite a reputation as a simple cost-cutter, Procurement can and should contribute more within the realm of Private Equity. Financial engineering is no longer the default means through which Private Equity firms aim to generate value and reliance is shifting towards maximising revenue growth, enhancing working capital and creating higher enterprise value through financial management. Read full article here
Despite a reputation as a simple cost-cutter, Procurement can and should contribute more within the realm of Private Equity. Financial engineering is no longer the default means through which Private Equity firms aim to generate value and reliance is shifting towards maximising revenue growth, enhancing working capital and creating higher enterprise value through financial management. Each of these areas represents …
4C Associates’ Milan Panchmatia explores the complex and evolving relationship between procurement and innovation. The word ‘innovation’ is overused. It has become one of the cornerstones of corporate jargon and in doing so has lost much of its meaning. To innovate means to do something new. That does not necessarily refer to a completely new product, but also to finding …
4C Associates’ Milan Panchmatia examines how a focus on indirect spend can help retailers impact the bottom line. Most procurement functions do not consider indirect spend the most glamorous area to focus on. In many cases it is an area of spend which is only considered once savings have begun to dry up elsewhere. A somewhat surprising state of affairs …
As we look forward to the Article 50 negotiations, Steve Harrison presents a positive case in relation to the UKs trading relationship with the EU going forward through the lens of a procurement negotiation strategy. The principle negotiating objectives in the two-year period prescribed by article 50 are twofold. First is to settle who is liable for ongoing liabilities, like …
Westminster City Council is partnering with International management and procurement consultancy, 4C Associates, to launch Symbiance, the first company of its kind dedicated to helping local and central Government, and public sector organisations make significant financial benefits. Read full article here
PRESS RELEASE FOR IMMEDIATE RELEASE London, March 9th 2017 Westminster City Council is partnering with International management and procurement consultancy, 4C Associates, to launch Symbiance, the first company of its kind dedicated to helping local and central Government, and public sector organisations make significant financial benefits. Over the last three years, Westminster City Council’s procurement team has contributed year-on-year savings across the Council, …
Westminster City Council is partnering with International management and procurement consultancy, 4C Associates, to launch Symbiance, the first company of its kind dedicated to helping local and central Government, and public sector organisations make significant financial benefits. Read full article here
UK consumers aren’t likely to regard Marmite, fish fingers and crisps as recipe bedfellows, and given recent Brexit-related pricing announcements they aren’t proving too appetising for UK retailers, either. Furthermore, currency volatility is only the opening salvo in the challenges the vote to leave the EU is likely to present to the industry. Read full article here
Procurement has always been a source of friction in marketing. Marketers don’t like procurement; it’s that simple, we are the enemy. This is also not helped by the industry perception that Procurement as a function lacks agility and creativity, both assets which are central to marketing and all that it stands for. But, with better communication and understanding this can, …
The issue with monopolistic suppliers and top-level footballers is the perception that under changing circumstances they have the power to dictate terms. Many of us will have seen our clubs held to ransom by one of its superstars and a few of us seen a similar situation at our organisations by that one tricky supplier. In this context, how can …
As fraudsters get better and better at targeting businesses, 4C’s Philip Joss considers the gravity of the issue and looks at what counter measures can be employed to minimise risks. Procurement fraud is a difficult area for many organisations to tackle. This is not only due to the ever-growing array of threats facing businesses, but also the sheer magnitude of …
Theresa May, the Britain’s prime minister, made a speech last week that sought to provide more detail about the kind of relationship the country will have with the European Union (EU) after it leaves. It specifically explained how the Government will manage the transition from a central player in the EU to a solidly independent trading nation. It left a …
As Europe continues to wait for economic stability to return, Milan Panchmatia considers how the UK’s vote to leave might affect equity markets. While the exact impact of leaving the European Union is still unknown, it is clear that Brexit will affect British and European businesses in a number of ways. Initially, currency fluctuations and volatile conditions are likely to …
Following Theresa May’s speech this week outlining a move towards hard Brexit, buyers will need shrewd contingency and risk planning. A recent report from Credit Suisse, examining trade relationships between the UK and EU countries, highlighted that many of the existing supply chains crossing the channel are designed to function within a single market. Breaking that single market, it warned, may …
Uncertainty and major mergers and acquisitions are reluctant bedfellows, according to 4C Associates’ Milan Panchmatia – but there are reasons for optimism. The long-term implication of Britain’s vote to leave the European Union is difficult to predict. The initial reaction, at least from the stock markets, was a loss in confidence and whilst this has been reversed with the FTSE …
4C Associates’ Mark Ellis examines how procurement can reap the benefits of joining forces with other functions within the enterprise. When it comes to driving and extracting value within an enterprise, much is made of the need for procurement to work more closely, collaborating and partnering with key suppliers. However, there are many examples of organisations which have invested in their …
Leading management consultancy, 4C Associates has conducted research of over 500 procurement professionals. Of those surveyed, 48 per cent say their boss still doesn’t ‘get’ what the procurement team does or can do. A total of 55 per cent say they are treated as a ‘support’ function – there to just cut costs rather than recognised for the strategic value they …
Almost half (48 per cent) of procurement professionals think their CEO or managing director doesn’t understand the true purpose of the procurement department, according to research by 4C Associates. And 55 per cent of those surveyed said they were treated as a support function, and there to cut costs. Read full article here
According to research involving over 500 procurement professionals* by leading management consultancy, 4C Associates, 48% said that their boss still doesn’t ‘get’ what the procurement team does or can do. 55% say they are treated as a ‘support’ function – there to just cut costs rather than recognised for the strategic value they can add across the business such as …
In a poll of 521 CPOs, managers and procurement personnel, 48% said their boss “still doesn’t get what the procurement team does or can do”. More than half (55%) said procurement was treated as a support function that existed to cut costs rather than add strategic value. Procurement departments need to highlight to their businesses what services they can provide beyond …
According to research involving over 500 procurement professionals* by leading management consultancy, 4C Associates, 48percent said that their boss still doesn’t ‘get’ what the procurement team does or can do. 55percent say they are treated as a ‘support’ function – there to just cut costs rather than recognised for the strategic value they can add across the business such as developing supplier …
4C Associates’ Jeremy Smith considers how the internet of things is changing the way businesses and consumers interact. The internet of things is not a new concept. The idea of countless devices connected to each other via the web has been around since the late 1990s. In fact, Kevin Ashton, Executive Director of Auto-ID Center, coined the phrase in 1999 during …
4C’s Robin Agarwal examines the benefits organisations can uncover by taking a closer look at tail spend Many have discussed Indirect spend tail management and the benefits that it can deliver to companies. However, having worked in Direct materials and services procurement with numerous businesses, we have first-hand experience that Direct tail spend is frequently mismanaged as well. The reason? …
In this whitepaper, we look at why and how the use of external support and bought in services or resource has become so critical for procurement leaders. The range and complexity of what is expected from leaders now means that no procurement function can meet all the demands put on it without making good use of external resources, whether that …
Mark Boswell, Senior Manager at 4C Associates considers the steps Procurement should take to understand and forecast pricing impacts due to currency fluctuations. Over the past 12 months’ sterling has fallen by over 20% versus both the US dollar and the euro. The decline really gathered pace post the UK’s June 23rd EU referendum result with the pound slumping c15% …
With limited direct impact on the commercial bottom line, environmental, social and governance is still viewed as a concern only for organisations struggling with public perception and looking to build their ethical or green credentials. The reality, however, is that all organisations must now consider the long-term ramifications of ignoring these corporate health assessments, where both unnecessary or unmeasured risk …
Mark Ellis, Managing Partner at 4C Associates considers the steps the function needs to take if it is to drive strategic business decisions. Procurement has come a long way in the past few years. In some enterprises, the function has gone from being seen as ‘blockers’, ‘bean counters’, ‘policy enforcers’ and ‘enemy of innovation’, to being viewed as a strategic …
The common barrier to new Procurement functions is that they are seen as administrative, as blockers to delivery. One way to respond to this is to take small steps forward by beginning with giving the operations teams what they want and making small, incremental improvements as we go. This works, we’ve seen it, but it isn’t quick, nor particularly impactful. Read …
Regardless of the size of a business, freeing up capital to grow is often a priority, especially for those businesses with ambitious expansion plans. The solution is often a supply chain finance (SCF) programme to help maximise working capital and kick start growth plans. Also known as supplier finance or reverse factoring, SCF is a set of solutions to optimise …
Rising risk levels, a lack of relevant skills and managing transition – Milan Panchmatia explores why anyone would choose to be a CPO. As procurement’s role evolves, this needs to be reflected in way it operates within the business. Savings and other traditional measures of success remain important, but no longer encompass everything the function brings. Delivering value – be …
Increasingly complex supply chains, tighter margins and global economic uncertainty have pushed risk management rapidly up the corporate agenda. The good news is that technological solutions, data analysis platforms and procurement best practice have all evolved at pace. This is the first in a three-part series of articles by Jeremy Smith, Director at 4C Associates on the changing roles of procurement, supplier management and …
The era is long gone when Private Equity was heavily reliant on financial engineering to generate the necessary returns from portfolio investments. Over the last decade, European financial market dynamics have meant that Private Equity firms have needed to increasingly focus on improving operational efficiencies of the underlying assets to generate the required returns. Read full article here.
Spring 2011: Prince William was getting married to Catherine Middleton, the Arab spring was dominating geo-politics, Portugal was being bailed out by the EU and Manchester United were winning the English Premier League. This was also the peak of the last commodity cycle. Unlike the financial collapse of 2008 (the previous commodity peak) it was not clear during 2011, or …
When reviewing marketing spend, all too often organisations focus on the broad budgetary issues that they have, want and need to solve, from ‘how can I buy or do this for less?’ to ‘why can’t my agency hit the brief first time every time?’. To address these types of issues there are a number of steps that can be taken …
The recent launch of Amazon Dash demonstrates an ever-increasing demand for speed, simplicity and ease amongst consumers – and with businesses also run by consumers, this level of service will soon be expected in the B2B world too. Jeremy Smith , Director at 4C Associates on how sometimes speed and urgency can outweigh cost. Read full article here.
Marketing is one of many functions which was put under growing pressure following the economic crisis. As a result, many businesses have seen increased collaboration between procurement and marketing. The latter needing an ally in the quest to maximise value and the former enjoying a more strategic role within the business. But what’s next? Milan Panchmatia, Managing Partner at 4C Associates …
Marketing is one of many functions which was put under growing pressure following the economic crisis. As a result, many businesses have seen increased collaboration between procurement and marketing. The latter needing an ally in the quest to maximise value and the former enjoying a more strategic role within the business. But what’s next? How can a forward looking business …
I’ve written before about the challenges of getting more young people involved in strategic procurement and many of points I made apply to facilities management. The main issue I highlighted is the continued perception of procurement as a cost saver and not a strategic business partner and problem solver. Part of the problem is due to the way in which …
The result of the EU referendum will undoubtedly have a profound and long-lasting impact on the entire UK population and is likely to be something that is truly generational. Whether we voted for Remain or for Leave, however, Brits now have to assess where we are and how we maintain our position in the global economy. Read full article here
It’s unlikely that the UK will immediately move away from the international agreements that the EU has and it’s likely that the administration of imports will become much more complex”. says Milan Panchmatia, Managing Partner at 4C Associates. Read full article here
Today’s announcement that Britain will be leaving the EU is a shock and at the very least, surprise to many. It will have huge implications for the country, its people and its business community. Leave campaigners claimed that import costs will be significantly reduced (by as much as 8%) as we move to being a zero tariff regime. Possible. However, …
With Private Equity firms increasingly under pressure to improve operational efficiencies within their assets as a means to drive value, Jeremy Smith considers procurement’s role. All mid-market Private Equity companies recognise the value procurement can bring in terms of sustainable EBITDA improvement, however, the portfolio companies they invest in often lack leverage given their scale in any given market. This …
This was the topic of this week’s webinar hosted as a debate between 4C and Spend Matters. The contention from Spend Matters’ Managing Editor Peter Smith was that following the demise of marketing procurement within PepsiCo all marketing procurement might be doomed. Peter, as we all know is a persuasive speaker who really knows his procurement, and he contends that …
The number of self-employed people in Britain hit record highs in the past years and is expected to continue rising. Recent estimates suggest 30% of the workforce will be self-employed by 2030. These developments pose new and exciting challenges for procurement and HR and highlight the importance of designing effective long-term strategies to manage this workforce. With businesses competing within a …
Towards the end of last year, PepsiCo sent shockwaves through the business world when it announced the dissolution of its marketing procurement department. Responsibility for agency spend and other fees now sit with the business’ individual brands. Many in the marketing industry have welcomed the change. Some see it as a means to bring in creative agencies and new ways …
This is a write up of a live interview with Ed Ainsworth on Share Radio. Listen to the interview recording here. We read a lot of stories about cases such as TalkTalk and other companies when they come to light but a huge number don’t. Most attacks don’t actually come to light. There are globally 19 million attacks a year. …
It is a common practice amongst Private Equity(PE) owned companies to tap into an Aggregator purchasing organisation that could leverage the bulk buying power of the entire portfolio owned by the PE owner. In the cases where portfolio companies are small to medium in size, it is often the case that they do not have indirect procurement departments. As the …
Back in October 2012, the Prime Minister unveiled a new scheme aimed at helping smaller businesses secure affordable finance. The initiative received a wide range of support and leading companies, including Diageo, Kingfisher, Tesco and IBM all signed up. The popularity of the scheme and the fact it was driven by both public and private sector organisations, indicates the potential …
In an economic climate where many businesses need to do more with less, procurement functions are increasingly looking to uncover new ways to incentivise their suppliers. Incentivising suppliers to deliver improved performances is not a new concept in the world of procurement. However, with an increasing number of businesses facing tighter margins, it is an area which certainly merits investigating. The …
Procurement is finally starting to get some of the recognition it deserves, but we need the right talent to make sure it keeps evolving. The challenging economic climate that we have experienced for the past few years has seen procurement make the step up from being a cost saver to a strategic partner. Whereas the function was once viewed as a …
Most organisations live in an increasingly competitive market and strive to at least maintain their cost base and focus on key areas that provide competitive advantage. While facilities expenditure has long been deemed non-strategic by most companies, the approach has been to maintain the status quo and address only those areas that present disruption to the smooth operation of the …
Much of the focus on the debate about the EU has been on the impact that any Brexit would have on exports and economic growth. On one hand the UK will lose access to the world’s biggest market, on the other hand it can negotiate free trade agreements more easily and export more freely from burdensome regulation. But what about the impact …
A lot has been written about spend analysis – analytics, cognitive procurement, big data and how to manage structured and unstructured data within your organisation. What we see in practice is a lot of companies working on three tiers of capability: Some companies still manage their spend analytics through the ERP-based data-warehouse, where static reports are generated and run at a …
How to bring project procurement process to the next level? Experts will explain techniques you should use, actions you should take and mindset you should have. Jeremy Smith, Director at 4C Associates on how to manage the procurement process. Read full article here.
There has been plenty of media coverage recently about the need for a “clamp down on some of the staffing agencies ripping off the NHS.” As a procurement professional who has worked as both a Non-Executive Director (NED) and business consultant in the NHS, it saddens me to believe that an essential part of the workforce supply chain (nursing and …
Supermarkets waging price wars is nothing new, however, the sustainability of the practice has long been called into question. The past two years, and the previous Tesco-dominated era, have been all about slashing costs and delivering the cheapest products possible. While this has proved advantageous for cash-strapped customers, and the growth of the likes of Aldi and Lidl, it has …
At a first glance, procurement and innovation come across as unlikely bedfellows. Whereas one is historically focused on delivering short-term savings, the other is more outward-looking and engaged in delivering less tangible results – at least in the short term. This outdated view of procurement’s relationship with innovation continues to persist in a number of companies despite numerous developments. An unstable …
Deciding to bring on a third-party provider can have multiple benefits. Chief amongst these is access to a cost-effective resource to cutting costs and delivering value. In an environment characterised by economic uncertainty the attraction is clear. However, not all providers offer the same service and it’s essential to select one which can mirror your expectations. Read full article on …
Ask anyone who knows little of procurement what they think the function does and “cut costs” is likely to feature prominently in the response. This is disappointing given the function’s strategic importance, but indicative of how procurement is perceived. Milan Panchmatia shares his insights. Read full article here.
Supplier Relationship Management (SRM) and innovation are two words frequently used in the same sentence. SRM has long been touted as the next step for many procurement departments looking to bring about a step change. The reason for this is simple. In many industries, suppliers are coming under increasing cost pressure and are simply unable to reduce costs alone. By …
In the not too distant past, compliance was seen as a necessary evil. A function which existed to limit others. But the array of legislation implemented following the financial crisis and accompanying fines, has made many businesses recognise the importance of the function. Companies have struggled to strike the right balance between investing in innovation and compliance and as a …
Reshoring or onshoring, is becoming increasingly popular in a number of sectors in the UK. The term refers to the practice of bringing back, or reshoring, functions previously outsourced overseas. There are a number of reasons why reshoring is a growing trend, namely a reduction in the wage gap between developed and developing economies, but also a desire to have …
Early involvement, savings delivery and knowing when to call on external expertise – a quick guide to building procurement’s profile during M&A activity. M&A activity has been increasing across the globe since 2008. According to financial software company Dealogic, global deal values hit the $1.75 trillion mark halfway through this year. Recent M&A activity includes General Electric’s $17 billion purchase …
A challenging economic climate has seen many marketing departments put under increased pressure to optimise spend and reporting. Marketers across the globe have found themselves with little option, but to turn to procurement for support. In many companies this “mandatory” collaboration has led to a blossoming relationship. I do not doubt that many marketers were sceptical when they first began …
As procurement takes on a more strategic role, we examine what’s next for the function and how CPOs can make the move to CEO. A bleak economic landscape combined with a global financial crisis saw procurement take on a key role in many businesses’ growth strategies. With traditional growth patterns being undermined across many industries, CEOs turned to procurement to …
Procurement is playing an increasingly important role in many businesses and the skillset of those working in the function needs to evolve to reflect this. Procurement’s increased involvement in wider business strategy has altered the skillset needed by those working in the function. Generally speaking this has manifested itself in a focus on skills related to relationship management and strategic …
Many of those working in procurement think that public and private purchasing functions operate in different universes. They equate working in the public sector with red-tape and rule books and the private sector with freedom and innovation. Whilst this might be true to some extent, there are lessons to be learnt from both sides. The main difference between public and …
The outsourcing of finance functions is not a new phenomenon. But can providers take on an even greater role which goes beyond what FDs would traditionally consider could be taken off-site: the one responsible for business financing? “It is definitely here today. The outsourcing industry has the capability to offer [business partnering] as a service. Most large outsourcers specialise by industry …
Companies will save money in the long term by investing in huge data management and storage capabilities, says consultancy firm 4C Associates. Speaking to IBTimes TV at the EIU CFO Summit, the consultancy firm’s managing director, Ed Ainsworth, also added that it could significantly help a company to become more profitable as it allows firms to better understand and manage their …
Referendum Since the Prime Minister’s announcement of his intention to hold a referendum on the future of the UK’s relationship with the European Union, questions around the impact of a possible change have seldom been far from the minds of businesses and the media alike. But what would the impact be on procurement? Although it is possible that the UK will continue …
With a recent study revealing that almost a third of the FTSE 100 have used the same auditor for more than 20 years, Antony Ray makes the case for increased procurement involvement. It was not too long ago that legal services and management consultancy were seen as areas which procurement should have little or no involvement in. Thankfully times have changed and …
In the past decade, many professional sports teams have dramatically increased their reliance on Management Information (MI). This data, which includes player specific metrics such as average match speed, distance covered and successful tackles, has proven invaluable to coaches looking to develop game winning tactics. Rugby players, for example, are now tracked via GPS to enable coaches to evaluate an …
As many companies look to freeze marketing budgets, Steven Sargent examines how procurement can help maximise value. The latest IPA Bellwether Report has revealed an increase in marketing expenditure of just 0.1 per cent for the first quarter of 2013. This reigning in of spend could well prove problematic for marketing departments faced with mounting advertising costs. As a function dedicated to ensuring …
4C Associates‘ second debate of 2013, focused on the ability of effective Supplier Relationship Management (SRM) to deliver a step change to an organisation. Jeremy Smith, Senior Manager at 4C Associates argued for the motion, whereas a senior buyer working in the financial services industry debated against. For the purpose of the debate, both parties agreed to define SRM as: …
Mergers and Acquisitions are a fact of modern business life and most employees will experience a number of mergers or takeovers throughout their career. Often they will view such activity as a threat to their position within their current organisation. This need not be the case. The strategic drivers for a merger are varied, for example the acquiring organisation may …
The section of the Legal Services Act (LSA) which allows for law firms to operate as Alternative Business Structures (ABS) came into effect in October 2011. In terms of ownership, this legislation means that for the first time non-lawyers are able to own and invest in law firms. Riverview Law, one of the first firms to take advantage of the …
Prediction one: Cost leaders will continue to set the pace Ed Ainsworth With slow growth being forecast throughout much of the western world, companies which adopt a cost leadership approach are those most likely to succeed. This strategy, which entails becoming the lowest cost producer in an industry, for a certain quality of product, has been successfully adopted by a …
Nate Silver, a statistician and political forecaster at The New York Times, first achieved fame in 2008, when his forecast for the US presidential election proved more accurate than most mainstream polls. He repeated this feat again in 2012, when he successfully predicted the election results in all 50 states. In “The Signal and the Noise”, Silver examines a variety …
With procurement functions under increasing pressure to deliver quick win savings, long term projects such as Supplier Relationship Management (SRM) are often put to one side. In addition, there is a divide in opinion regarding the involvement of buyers in SRM; in some business the functions are kept separate whereas in others SRM is part and parcel of the procurement …
This year’s CIPS Conference, “Building the Profession of the Future”, saw some of the industry’s most high profile leaders discuss how buyers can tackle the new challenges facing the sector. 4C Associates was a Gold Sponsor at the event and was invited to host a session on cost leadership.David Noble, CEO of CIPS, opened the conference with a speech underlining the increased …
With many economists making bleak predictions regarding the ongoing economic crisis, optimising spend is a priority for many businesses. This has led to increased pressure on numerous functions, including logistics and supply chain, to work with procurement to maximize efficiency and drive company growth. Despite this, there remain many who are unconvinced by procurement’s ability to work with logistics and …
What is Cost Leadership? In his 1985 book, “Competitive Advantage: Creating and Sustaining Superior Performance”, Michael Porter identifies three generic business strategies. These approaches can be applied to products or services across all industries, and in companies of varying sizes. One of these, “Cost Leadership”, is a strategy based on being the lowest cost producer in an industry, for a …
There are many different views and opinions on what makes a good negotiator, 4C’s Guy Allen takes a look at some of the characteristics required to secure the best deal.Negotiating is one of the single most important skillsets needed to run a successful business. An advantageous contract with a supplier can be the difference between a successful quarter and bankruptcy. …
A growing number of businesses are looking to drive growth by cutting costs and optimising spend. In this context there is an increasing amount of pressure on marketing and procurement to work together. Traditionally, there has been some scepticism regarding these functions collaborating given their respective mandates. 4C brought together a selection of professionals from several sectors to determine whether …
Frugal or ” Jugaad” innovation is a concept which is being embraced by businesses across various sectors. One aspect of this movement, which is particularly relevant to the healthcare sector, is producing low tech alternatives to more complex products.Companies such as General Electric and Siemens, which produce some of the globe’s most expensive and complex pieces of medical equipment, are looking …
With legal expenditure coming under increasing scrutiny, 4C assembled a group of procurement and legal professionals to debate the pros and cons of sourcing external legal services with procurement involvement versus the in-house legal counsel sourcing the services themselves. Antony Ray, Senior Category Manager at 4C Associates, argued that procurement was best placed to secure legal services whereas Emmanuelle Recoules, …
London, UK, 16 January, 2012 – Key3, the consulting firm specialising in logistics operations and logistics systems improvement, has been acquired by 4C Associates, the consulting and outsource firm specialising in cost and procurement transformation. Key3 have delivered many millions of pounds of savings to blue chip organisations and bring first class expertise in delivering change in logistics operations, through a rare …
All of our clients are wrestling with this issue. Overall inflation in the UK is now falling (down from 4.4% in February to 4.0% in March, see chart) however this overall decline masks large swings in specific prices. Oil, energy and logistics costs are increasing Labour and people based costs are remaining stable Technology costs continue to decrease Costs of …
