Strategic Sourcing

Strategic Sourcing

Adopting a category focused approached and embeding strategic sourcing methodologies allows Hawtrey Dene to deliver sustainable cost savings while improving supplier performance.

Prior to the delivery of strategic sourcing programmes, our delivery teams focus on identifying the maturity of the client’s procurement organisation.  This involves answering a number of key questions which include:

  • Does the procurement team adopt a strategic or transactional approach?
  • What is the current development need in terms of both staff and operating processes?
  • How aligned is the Procurement team with their functional stakeholders and in meeting the wider business objectives?

Following an opportunity assessment across direct, indirect or both spend categories, we develop a strategic sourcing programme which addresses priority cost reduction opportunities.  In order to ensure adequate focus and stakeholder engagement, senior leadership sponsorship is essential.

Strategic sourcing methodology

Hawtrey Dene’s 7 step process underpins our strategic sourcing programmes.  Our strategic sourcing methodology maximises client value while mitigating supply risk and incorporates a cross-functional approach to ensure stakeholder buy-in.  From the outset, we develop detailed project timelines and map all stakeholders aligning on communications plans at all levels.

Following the stakeholder mapping exercise, our key focus is data collection. We collect granular spend and volume data in order to formulate a detailed project baseline.  As project savings are measured versus the baseline data, we ensure client alignment by sharing and signing off the baseline and proposed saving methodology with key stakeholders (often including client Finance teams).  In addition to baseline spend, we also capture current specification and process data, and map the category organisational structure and the supporting IT enablers.  Each of these components enable Hawtrey Dene to formulate a detailed category profile.

Following a ‘needs’ versus ‘wants’ analysis of the category requirement and a robust analysis of the category supply market, Hawtrey Dene identifies the optimum category strategy by evaluating a range of cost reduction levers which include:

  • Specification optimisation
  • Process improvement
  • Supply base rightsizing
  • Demand management
  • Leverage volumes

Upon securing alignment on the category strategy with the core project team, we develop RFP documents and share content as well as proposed RFP participants with key stakeholders.  Following the submission of responses, we develop balanced scorecards which include all key selection criteria, and evaluate responses in conjunction with client stakeholder teams. Negotiation plans are devised and, following the negotiation phase, a data-driven recommendation is made to our clients. While cost reduction is our raison d’etre, we adopt a holistic approach when making our recommendations and cost is always balanced against other criteria which includes, quality, service and any other associated risks.

What sets us apart is that, on sign off of our recommendations, we assume responsibility for implementation. Working with client teams, we seamlessly embed any changes.

Hawtrey Dene can then provide support in terms of ongoing Supplier Relationship Management (SRM), ensuring that supply partners continue to meet service and quality expectations while delivering ongoing innovation to drive further cost savings.

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