What is Procurement?

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Definition

Procurement and supply management involves buying the goods and services that enable an organisation to operate in a profitable and ethical manner. Responsibilities vary from sourcing raw materials and services to managing contracts and relationships with suppliers. Procurement is often responsible for up to 70% of companies' revenue, so small reductions in costs can have a huge impact on profits. 


Source - Chartered Institute of Procurement and Supply (CIPS)

Benefits

1. Cost visibility and control

2. Risk identification and mitigation

3. Innovation creation and management

Pruune's Experience

We are passionate about helping companies increase their profitability. Simply put, companies can increase their profitability either by reducing their costs or increasing their sales. We believe reducing costs is more sustainable, increases competitiveness and supports increased sales.

After 15 years working in different industries for global multi-nationals, leading global and regional teams in procurement, logistics and supply chain teams, Pruune Consulting Ltd was created. Pruune was created with the vision of leveraging all the gained experiences in procurement, logistics and supply chain to empower companies to achieve profitability.  

We achieve profit for companies primarily through coaching companies/companies outsourcing their business requirements to us. We have a track record of delivering results. Our scope includes - procurement, logistics, supply chain, project management and change management. 

Why Pruune?

1. Procurement knowledge - 15+ years experience in procurement, logistics and supply chain.


2. Proven Track record - Over 30 million Euro savings delivered to companies.


3. Customer experience - We typically exceed our customer expectations based on the project goal given.


4. Innovation - We are strong advocate for innovation and leverage our supplier base to drive innovation for our customers.

Awards & Affiliation

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Procurement Consulting

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Introduction - Procurement Consulting

Based on the philosophy of minimizing price and optimising consumption, Pruune puts your business’s procurement plan under the microscope. Purchasing price variance methodology ensures premium acquisition costs while Pruune’s 8 Step Procurement Process builds and maintains positive relationships with suppliers. Simultaneously, lean and six-sigma processes improve product consumption efficiency. This combination of optimised purchasing and resource use consistently delivers significant, sustainable profit growth. 

Procurement Process

Our procurement consulting covers eight key steps which includes -

1. Spend analysis

2. Category Management

3. Sourcing Event

4. Contracts support and life cycle management

5. Supplier implementation and change management

6. Supplier relationship management

7. Supplier performance management

8. Supplier innovation

Procurement Tools & Process

We have advanced procurement tools covering benchmarking, negotiations, request for information, request for quotation, request for proposal, e-auction, contracts, key performance indicators, Value Add Value Engineering (VAVE), data analytics, savings calculations, network optimization, etc. 

Typical Procurement Results

Benchmarking - Up to 10%

Negotiations -Up to 20%

E-Auctions - Up to 30%

Low Cost Country Sourcing - Up to 50%

Additional services

Procurement training covering - negotiations, commodity strategy, supplier deployment, supplier performance management, supplier relationship management

Procurement Process - Initial Stages (Procurement Consulting)

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1. Spend Analysis

This process involves collecting, cleansing, classifying and analyzing your expenditure data with the purpose of decreasing procurement costs, improving efficiency, and monitoring controls and compliance. 

2. Category Management

This is a strategic approach which organizes procurement resources to focus on specific areas of historical spends. This enables the procurement function to focus their time and conduct in depth market analysis to fully leverage their procurement decisions on behalf of the whole organisation. 

3. Sourcing Event

Sourcing is the process of developing channels of supply at the lowest total cost, not just the lowest purchase price. It expands upon traditional purchasing activities to embrace all activities within the procurement cycle, from specification to receipt and payment of goods and services. The typical sourcing process includes - creation of product specification, issuing request for information, issuing request for quotation, negotiation, supplier selection and supplier award. 

4. Contract Support and Life Cycle

A contract is a promise or set of promises that are legally enforceable and, if violated, allow the injured party access to legal remedies. Contract law recognizes and governs the rights and duties arising from agreements. We will work with you and a legal representative towards putting in place a robust contract covering all the main procurement clauses, KPIs and terms. 

5. Supplier Implementation and Change Management

Phased approach towards supplier switching i.e. Implementing the selected supplier and ending the incumbent supplier. Process also includes new supplier system setup and process setup. 

Procurement Process - Post Award On going Stages

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6. Supplier Relationship Management

Periodic formal and informal meetings with the customer and supplier. These can be monthly business reviews, quarterly business reviews to check the relationship between customer and supplier. 

7. Supplier Performance Management

Listing all the agreed KPIs, measuring them to ensure they are in line with he customer's expectations. Whereby performance is below customer expectation, work with the supplier on a supplier performance improvement plan. 

8. Supplier Innovation

 Using various tools i.e. VAVE, lean; work on various ways to control and reduce supplier costs.