Procurement and
Contract Management
Reduce the impact of supply chain and procurement processes on asset performance.
Unexpected downtime in asset-intensive industries is hugely expensive. Beyond the obvious impact of halted production or heavy machinery sitting idle, there is the hidden impacts on business support costs, staff, reputational damage and the cost of fixing the underlying cause of the downtime incident. Supply chain issues are often one of the significant contributors to excessive downtime – many of which can be avoided.
Source to Contract (S2C) procurement processes, as part of an integrated and coordinated effort to achieve value from an organisation's asset, can contribute to assuring asset reliability and avoiding the consequences of unexpected downtime.
S2C refers to the end-to-end processes performed within an organisation to buy goods. It begins with activities such as analysing the product or service requirement and developing a sourcing strategy before obtaining quotes, negotiating a contract, and ultimately awarding the contract to a supplier. Done well, it helps streamline operations, improve response times, reduce material costs and identify better sources of supply.
Optimising asset performance is dependent on effective and strategic S2C processes. This applies not only to the acquisition and disposal of reliable assets, but also to securing and making available the quality services and spares required to maintain asset reliability at the best possible cost.
Optimising S2C processes can ensure complete and accurate job plans align with maintenance strategies, financial systems integration and streamlining processes to evaluate planned versus actual consumption.
COSOL's process consulting team can review your organisation's procurement and contract management practices and provide advice on recommended changes to help find savings in time and cost while contributing to improved performance and reduced risk.
Our procurement and contract management services include:
- Process Audits
- Procurement Strategy Development
- Sourcing
- Vendor Management
- Contract Management
- Contract Compliance
- Procurement Risk Management.
Procurement And Contract Management Services
Regardless of the tools, systems or technologies currently in use, COSOL can provide a variety of services to help businesses improve procurement processes. Below are these services explained:
Process audits
Process audits provide a comprehensive review of a company's end-to-end S2C business process, including systems and procedures, and identifies improvement opportunities, such as reducing waste, increasing efficiency and improving accuracy.
Procurement Strategy Development
Development of procurement strategies that align with organisation's business goals. This may include identifying and prioritising procurement objectives, developing sourcing plans, and selecting the right procurement tools and technologies.
Sourcing
Identify and assess processes to manage potential suppliers, issue requests for proposal and evaluate supplier bids.
Vendor Management
Identify and assess ongoing Vendor Management processes, including supplier performance management and risk assessments.
Contract Management
Identify and assess processes to manage the entire contract lifecycle, from negotiation to closeout. This may include monitoring contract performance, managing supplier change requests and resolving disputes.
Contract Compliance
Identify and assess processes to monitor contract compliance, including conducting compliance audits, developing compliance plans and implementing compliance controls.
Procurement Risk Management
Mitigate risks by identifying and assessing risk management processes, including conducting risk assessments, developing risk mitigation plans and implementing risk management controls.
How S2C Processes Help Reduce Downtime
S2C processes, as part of an integrated and coordinated effort to achieve value from an organisation's asset, can contribute to assuring asset reliability and avoiding the consequences of unexpected downtime by:
- enhancing supplier relationships
- improving supply chain response times
- enhancing delivery accuracy
- improving parts and services availability
- identifying and addressing supply chain problems early
Why COSOL
COSOL'S AM process team has worked with asset-intensive organisations across a range of industries for over 15 years and can help clients:
- improve efficiency by identifying and implementing processes that will improve procurement efficiencies and reduce costs
- increase profitability by improving Source to Contract practices, which can lead to increased profitability
- reduce risk by implementing processes that will help mitigate risks associated with supplier relationships by ensuring contracts are fair and equitable
- improve customer service by ensuring that an organisation's sourcing and contracting processes are clearly defined and managed appropriately
- maintain compliance with regulations by implementing processes that will help organisations track and manage sourcing events, vendors and contracts accurately.
AUTOMATE PROCUREMENT
Automate the procurement process by having the right supplier contracts in place.
BOOST BUSINESS PERFORMANCE
Refreshed Source to Contract practices can improve efficiency and reduce costs, with a direct impact on the bottom line.
REDUCE SUPPLIER RISK
Implement processes that ensure contracts are fair and equitable and mitigate risks in supplier relationships.
DRIVE VALUE FROM CONTRACTS
Negotiate and fully utilise mutually beneficial contracts that help build a strong, reliable and cost-efficient supply chain.
HELP REDUCE DOWNTIME
Procure the right type and quantity of spares that support maintenance and operations teams in reducing asset downtime.
REDUCE WASTAGE
Better manage rotable/repairable or stored spares to reduce stock wastage and cost.
EMBED BEST PRACTICE PROCESSES
Contact our asset management process experts to learn more about how we can help embed asset management best practice processes into your organisation.