Are you making the most of your presence in multiple countries?

For reasons of corporate culture and/or governance, the maturity of the procurement teams or other reasons, it is common for Group Procurement Departments to be confronted with a siloed approach with very little collaboration, which can give an advantage to suppliers who most of the time know more about sourcing projects than the procurement teams themselves. There are several ways to create value through internationally focused techniques without requiring a centralization. It all starts by exploiting internal benchmarking opportunities to create a common sourcing approach with similar requirements.

We analyze several factors:

  • The availability and reliability of data to fully assess the expenditure information in countries.
  • Existing contracts and ongoing sourcing projects.
  • The existing way of working, governance of procurement, delegation of tasks between Group Procurement and local structures, procurement profiles.
  • Comparison of the conditions obtained in different countries to challenge existing agreements and those under negotiation.
  • We often find that the economic benefits delivered by a coherent international approach are around 10% higher than those obtained by a local siloed approach.
  • The people managing procurement in the different structures have an opportunity for up-skilling and the procurement is more flexible and efficient because there is less waste in sourcing projects.