- Reduced costs both in the short-term and longer-term for improved profitability
- Enhanced supplier relationships with opportunity for innovation
- Consistently robust decision making based on rigorous analysis of the market and competitive forces
- Ethical procurement principles embedded within your cost transformation process
- Sustainable cost reduction guided by longer-term category management plans.
Cost Transformation Service
Aspire to achieve
Achieve more with your cost transformation strategy
Why Choose Us
Value Add
Our cost transformation delivers more than cost reduction plans. We focus on results that provide a longer-term view for maximum return on investment for clients. And we support clients to consider ethical procurement practices meaning in addition to achieving lower costs, they can deliver social value outcomes.
An Experienced Team
At Barkers our consultants typically possess between 15 and 30 years’ procurement and commercial experience; so we know a thing or two about cost transformation. Our highly skilled team have delivered significant cost transformation programmes across countless clients operating in varied sectors.
A Synergistic Approach
We’ll ensure the cost strategy is aligned with broader business strategy, and we’ll seek to gain synergies from across the business to enhance success.
Features of Cost Transformation
The Cost Transformation process begins with a detailed analysis of the client’s expenditure.
We undertake four key activities:
We’ll analyse client’s current spend, planned spend, their current suppliers and associated contracts to gain a thorough picture of the cost landscape within the organisation. We take into consideration current business circumstances such as mergers and acquisitions, organisational structure changes or external influences such as technological changes which may affect the current cost base. Client analysis will be followed by a market assessment on large spend areas to gain a greater understanding of alternative supplier offerings. We’ll also seek to understand how client competitors solve cost problems using a robust benchmarking process.
During this action phase we’ll support clients to reduce costs in multiple ways. We target three main areas:
- Demand – We address the volumes and quantities required by the client and offer our insight to suggest changes which may help to reduce this demand.
- Specification – We’ll challenge the specifications of contracts, products and services within the business. In doing so we get to the root of the core requirements, understand where there can be flexibility in the specifications and make decisions on where cuts could be made without loss to quality or efficiency. Of course, we’ll always take into consideration contractual obligations, termination clauses etc.
- Supply – Finally, we’ll address the supply itself via the open market. We’ll identify alternative suppliers and assess their credentials for delivery to the client.
Because we believe in ethical procurement principles at Barkers, we’ll work with clients to gain a greater appreciation of the ways in which the procurement function can deliver social value through its day-to-day activities, including as part of a cost reduction programme. Whilst maintaining a focus on cost reduction as the main driver, our team can help clients achieve enhanced results whilst still achieving primary cost objectives.
During the Category Management phase we’ll take a longer-term strategic viewpoint for particular categories. We help clients in a detailed way to get value out of a particular market for any goods or services, providing a category plan which encompasses current circumstances in the external market, highlighting internal demand, and detailing how clients can attain best value.
The operational running of the cost transformation programme will be addressed during the transactions management phase. We’ll ensure that procurement teams have the mechanisms to buy correctly and the technology in place to purchase appropriately. This could include advice on digital procurement solutions such as Coupa for example.
“We selected Barkers primarily for the depth of their procurement experience but also because their ethical approach and commitment to the creation of social value differentiates them from other consultancies. The Barkers team worked alongside our staff to enhance the team and accelerate our delivery of budget impacting savings and the creation of localised social value.”
David Levy, Head of Strategic Procurement, Seven Force Strategic Collaboration
Outcomes
Our clients benefit from a significantly reduced cost base and usually reap the rewards from our comprehensive supplier evaluation and appraisal processes. Supplier relationship management is a core thread throughout our cost transformation process; our team will work with the client’s internal teams to facilitate the development of those relationships, encouraging innovation, continuous improvement and enhanced communications.
Upon completion of our cost transformation process, clients can expect a greater understanding of the market, competitive forces and external factors which influence their cost base. This insight is key to effective decision making and facilitating better-informed long-term business planning.
At Barkers we pride ourselves in embedding ethical procurement into all that we do. Our team will support clients to embed ethical procurement practice into their everyday procurement processes, facilitating sustainable solutions whilst always retaining a focus on optimum value and cost reduction delivery.
Achieve your business ambitions with Barkers.