Every company purchases materials, supplies, or services to successfully build products, execute business tasks, and create value. Taking a structured approach to developing and implementing a sound procurement strategy is a key step to achieving a cost-effective supply of required materials or services, which usually requires evaluation of critical trade-offs. Most companies have complex value chains that are also continually impacted by external conditions such as government policy, macroeconomic conditions, and natural disasters. Ricardo Strategic Consulting (RSC) can cultivate successful procurement strategies, delivering cost-competitive components from a world-class supply base while providing security from supply chain disruption.
At RSC, our approach to developing and implementing a successful procurement strategy typically begins with conducting extensive primary and secondary research to understand trends in the global commodity market, supply base, and industry capacity. This approach also involves identifying and ranking multi-faceted external and internal risks, integrating bespoke risk mitigation solutions into short-, mid-, and long-term growth strategies, and providing program management services to drive execution and delivery. A key output is the harmonization of client goals, including total cost, productivity, local content, and quality targets.
Our experienced consultants can help your company:
- Navigate supply base risks while identifying new supplier capabilities and competencies
- Perform cross-functional risk identification and mitigation to address multiple sources of risk
- Quantify market cost drivers: technology and manufacturing process disparities, volume, capital investment, raw material, and high-value content
- Evaluate supplier metrics (historic quality, pricing trends, financial performance) to identify supply risk
- Capitalise on emerging trends in supply chain configuration and global manufacturing footprint
- Assess global supply risk factors: geographic, economic, intellectual property/counterfeiting