The CFO aims to conduct a comprehensive review of all third-party spend with cost reduction in mind, yet current visibility across the business is limited. Without clear insights into supplier costs, contract terms, and procurement efficiency, identifying opportunities for savings and strategic improvements becomes challenging.
Enhancing spend visibility allows businesses to streamline procurement, strengthen supplier relationships, and maximise value creation. By gaining deeper insights into expenditures, organisations can mitigate financial risk, improve contract management, and ensure alignment with overall business objectives.
Are you looking to refine your supplier portfolio and focus on fewer, high-value partnerships? A carefully selected network of preferred suppliers can enhance efficiency, drive competitive pricing, and reduce complexity in procurement operations.
Alternatively, introducing a new supplier portfolio could provide access to innovative solutions, cost advantages, or improved service levels, ensuring your organisation stays agile in a dynamic market. Strategically onboarding new suppliers while maintaining rigorous performance evaluation can help optimize sourcing strategies.
If existing supplier contracts no longer deliver optimal value, renegotiation could unlock cost savings, improved terms, or enhanced collaboration. Strong contract management ensures that agreements are structured to maximise ROI, increase flexibility, and support long-term procurement efficiency.
Unlocking Spend Visibility for Smarter Decision-Making:
Achieving full transparency over third-party spend requires the implementation of advanced analytics tools, automated reporting, and enhanced procurement governance. Solutions like Power BI dashboards, AI-powered spend analytics, and digital contract management platforms help organisations track supplier performance, monitor costs, and identify inefficiencies in real time.
By taking a strategic approach to third-party spend management, The Procurement Hive helps businesses ensure financial control, supplier accountability, and sustained procurement excellence. Are you ready to transform your procurement strategy? Let’s explore how targeted insights can drive better business outcomes.
The Procurement Hive team are experts in Spend and Opportunity Assessments which are done at pace and deliver:
An accurate and granular spend profile, presented in a series of procurement dashboards.
A qualified view of on-going active spend management options, to include a digital procurement perspective.
A bottom up, category-by-category opportunity analysis, with estimates of potential savings.
A qualified view on approach to market, for where there is supplier choice or where existing single sourcing contracts will remain.
An Implementation Plan – a comprehensive but pragmatic roadmap for achieving target savings and value. One which distinguishes between ease of implementation versus spend category complexity versus savings opportunity.
Our approach
A successful sourcing programme hinges on the ability of your organisation to thoroughly understand and have control of all spend. Getting spend analysis right is an essential step toward bringing more spend under management, delivering sustainable cost reduction, spend category process improvement and overall value creation. McKinsey and Gartner benchmarks recognise a 5%-15% savings potential profile, for 70% of addressable spend influenced.
Our spend analyst will conduct a comprehensive review of all direct and indirect spend. They will create a spend taxonomy and categorise the data, then present it in a series of dashboards. The analyst, working with the Procurement Hive lead consultant, will assess whether there is a cost justifiable value for a lite digital procurement implementation for active on-going spend management, under procurement leadership. The approach we take delivers deep insight in quick time and can be easily integrated with your ERP.
This sets the stage for the development of strategic sourcing plans — a key factor in procurement’s effectiveness. The Procurement Hive consultant will lead and facilitate a savings and value opportunity assessment, working in collaboration with Procurement, Finance and relevant key stakeholders.
Cost reduction activity
We will deploy our structured sourcing methodology, using the spend category baselines, analysing the relevant supplier markets. We will lead the end to end tender process for each product/service, covering at a high level:
Creation of the detailed go to market strategy, to include shortlisted supplier profiles
All supplier engagement and communication.
Creation of the tender documentation.
Facilitation of all internal stakeholder dialogue.
Development of supplier selection criteria.
Day to day management of the tender process from issue to review through to contract signatory.
Contract and pricing negotiation.
Contract execution and implementation into a supplier management led approach.
For where there are no opportunities to go to market and competitively tender, given supplier dependency, we will lead the commercial/relationship conversations with these suppliers to renegotiate existing contract terms.
Our structured approach delivers measurable savings that can be traced through to the bottom line. We will work with your Finance protocols/savings definitions to distinguish between one-off and sustainable benefit. We place an emphasis on total cost than purely price, to ensure that quality and relationship is not impacted.
We will look to leverage your brand and position in the market to move your organisation towards a customer of choice position with your strategic suppliers.
