BUYING

BUY

SRM offers a new class of solution designed specifically to address these challenges. Spend is placed at the center of a company’s sourcing and procurement strategy. SRMs’ spend reduction programmes achieve high savings by understanding and managing spend. Such programmes require the right combination of people, processes and technology to successfully design, deploy and maintain a sustainable programme.

THE BUYING PROCESS ___________________________________________________________________________

Our spend reduction and buying programme comprises three distinct processes:

Understanding Client Needs

SRM realises that issues surrounding the supply chain lie at the heart of the enterprise. Engagement levels may differ from client to client. In some cases SRM may simply buy or provide the ‘cheapest’ or ‘quickest available’ product as an accredited BBBEE supplier. In other cases, strategic issues are at hand and clients may require subtle understanding and handling of existing ‘strategic relationship’ with suppliers. SRM aims to understand the business drivers, strategy, supply chain; all with a purpose to identify areas or products to reduce spend and save costs. SRM needs to understand the overall strategy and the role the supply chain plays in realising this strategy. SRM needs to gain insight into supplier relationships and how they are managed by the company.

SRM identifies opportunities by using savings’ optimisation techniques to identity projects that will yield the greatest returns in the shortest possible timeframe.

Design

An outcome based plan is agreed with the client.

Implement

Although SRM Solutions shows short-term spend savings, this is not only a short-term initiative. To unlock value from our processes, SRM needs to become long-term partners with the client. In addition to spend-savings and management, our clients benefit in more ways than simply saving money. Processes become aligned with ‘best of breed’ international practices, procurement and sourcing cycle times are optimized, processes are supported by world-class technology and suppliers are professionally managed. SRM are building global networks and partnerships, resulting in aggregation possibilities. Where volumes can be combined, the volume aggregation process is initiated and shows great benefits for all participants. Supply chain risks are reduced by creating better insight and understanding in the supply chain through ‘supply chain intelligence’.

Situation Analysis

Understanding where your business is today, is the key to any improvement. We can provide specialist analysis to give you a detailed picture of your current business – particularly focused on buying strengths and weaknesses. This can include:

•Spend data collection and analysis
•Category analysis
•Product and supplier performance
•Vendor analysis and rationalisation
•Review of buying and systems and processes
•Operating unit audits

Using the above we can produce a spend intelligence report that can be used to refine your buying strategy and save money on expenses.

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