The entire procurement profession is in danger of being trapped in a downwards spiral; unable to deploy strategic supply chain capabilities because of lack of resource and senior management buy-in, but forced to chase ever more elusive short term cost reductions. This article exams what CPOs need to focus on to ensure that the procurement function thrives.
Provision of facilities management services for residential and commercial properties is a complex undertaking which requires 24/7 coverage across numerous geographies and trades. This White Paper describes how Argon assisted a client to reduce a supply base of 900 FM contractors to fewer than 60 whilst improving customer service and reducing complexity and cost.
Time is money, and this is never truer than in Facilities Management (FM). On a recent assignment with FM suppliers of a major UK property management company, we discovered a great deal of non-value added time was being incurred by the suppliers’ field personnel while servicing fire and security systems. Through a fact-based and systematic analysis we were able to implement improvements that reduced supplier costs by 25% while improving service levels.
“Do you know what your goods or services should cost?” It is a question that is often far easier to ask than to answer. In fact, the answer can be like a double edge sword. If you answer “yes”, you will likely be asked to provide it. If you answer “no”, then you expose
yourself to next question…..”Shouldn’t you know?”
Argon Consulting’s extensive experience in all aspects Consulting and Contractor Services procurement has provided us to with a rich point of view with which we have written this White Paper. We recognize that while management of Consulting and Contractor Services can be complex, one can tailor procurement practices to address the business specific nuances and requirements of this challenging category.
Procurement professionals have come to expect cost reduction as their primary “raison d’etre” in order to improve profitability and competitiveness. However management of risk and uncertainty are increasingly becoming a key area of focus for procurement professionals as most industries are facing economic, supply and quality threats.”
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