This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
The global leader in enterprise G&A best practice insight and organizational effectiveness– We understand how the best do it, where they
do it and the benefit of doing it
Implementation advice comes from over 4,000 benchmark studies
We address both efficiency and effectiveness including strategic business enablement
Our efforts have delivered over – $90 billion in sustainable cost savings– $25 billion of improved cash flow benefits
Delivery of actionable solutions through– Benchmarking– Business Consulting– Functional and Process Advisory programs– Technology implementation services
Global team of 50+ Procurement professionals Serving a portfolio of the world’s leading companies Procurement services focused on driving accelerated value:
Widely recognized for our Procurement expertise:– On the Board of the Sourcing Interests Group (SIG)– Selected to Brown-Wilson Group’s The Black Book of
Outsourcing’s Top Ten “Boutique Outsourcing Advisory” list – One of the “World’s Best Outsourcing Advisors” as rated by
IAOP™
Extensive experience in developing innovative solutions to the complex issues facing the CPO
Over $15B sourced with $2B+ of savings (~13%)
Archstone Consulting, a Hackett Group company, is a Recognized Leader in Sourcing and Procurement
Hackett Value Grid™ − the foundation for how Hackett defines world-class performance
Hackett Procurement Value Grid™
EFFECTIVENESS
Economic return Role of procurement Process quality Supplier leverage & performance Information & analysis Business IntegrationExamples: Total spend cost reduction and
avoidance as a % of spend % of suppliers comprising top 80% of
spend % of transactions requiring post-
issuance (i.e., rework) activity % of total spend under procurement
Process costs Staffing levels Productivity Cycle times Technology leverage Cost per transactionExamples: Cost as a % of spend
– By Geography, Business Unit FTEs per $1B of spend # of POs processed per FTE PO processing cycle time Staff time allocation by process Ratio of labor to technology cost
Designing and Executing an Optimized Service Delivery Model The key to World-Class performance
A Procurement Service Delivery Strategy defines the plan and delivery model for determining the who, where, what, why and how for the execution of all Procurement processes in support of the enterprise’s goals and objectives
Representative Clients and ResultsRepresentative Clients and Results
Benchmark Savings RangeBenchmark Savings Range 8-12%
Fragmented set of temporary labor suppliers serving multiple locations with little overlap
Inconsistent requirements for each job function Wage and mark-up variations across job function
and location (outside of standard, market driven factors)
Customer handling the majority of administrative functions associated with temporary labor – e.g., screening, payroll, conflict resolution
Typical SituationTypical Situation
Key Levers and Best PracticesKey Levers and Best Practices Standardization of job descriptions, candidate
requirements and pay ranges across job function and location
Vendor consolidation to a set of firms that can handle an organization’s nationwide needs
Administrative functions to be handled by temporary vendor, potentially with onsite personnel
Strategically sourced for a $900M financial services firm ~10% savings from competitive bidding and vendor
consolidation Additional vendor services provided through the onsite
management of temporary personnel Optimized pay scale by job class – increasing in some
areas and decreasing in others Established a detailed scorecard for monthly/quarterly/
annual reporting Integrated vendor’s and client’s systems to facilitate the
A/P process Base pay mark-up Fill rate and time to fill Turnover/retention Temp to hire conversion, if desired
Supply Market Insight and Current TrendsSupply Market Insight and Current Trends
Consolidating industry with the historically local focused firmsbeing acquired by larger, nationwide providers
Recent economic downturn has significantly impacted a number of large temporary labor firms such that few have generated a profit for the past two years
Even with a nationwide presence, large firms are still subject to (and must be knowledgeable about) the local dynamics in each market that they serve
• We offer a complete suite of services to meet your need to drive sustainable value through Strategic Sourcing and Procurement in a wide range of environments including Pre- and Post-merger, Transformational, Ongoing Operations, Category Management
• We bring significant intellectual capital (templates, benchmarks, best practices, methodologies, training materials, etc) to category sourcing and spend analysis
• We have senior, experienced staff that can enable results both through sourcing diagnostics, and category sourcing
• We have deep category expertise in many categories – including industry-specific categories
• We have considerable contracting experience and can assist with the development of beneficial contract language for the categories which we source
• We work closely with our clients; typically on-site; in a supportive, collaborative manner that is neither intrusive or disruptive but results focused
• We have defined operating practices which can be used to train staff, effectively manage project work load and more clearly communicate with internal customers as well as suppliers
• We are truly independent of any software provider or tool set