Sourcing & Procurement: The processes that strengthen your business
The procurement organization plays a strategically important role in most companies. It builds strong and reliable relationships with relevant suppliers, which promotes better service, faster deliveries, and opportunities for innovation and collaboration. Additionally, the procurement function identifies and manages risks in the supply chain, such as delivery delays, quality issues, and geopolitical events that affect material availability. It also ensures the company adheres to sustainability principles and ethical guidelines by selection suppliers that meet said standards.
Despite these important tasks, many organizations still struggle with manual processes and a lack of transparency and control, which forces the procurement function to spend time on administrative tasks rather than more value-creating activities.
PwC can assist your company in all aspects of the Source-to-Pay (S2P) process. An effective and well-implemented S2P process connects strategic and operational procurement and acts as the engine for defining, delivering, and securing business value through:
Efficient processes and transactions that get it right the first time
Reduced administration and workload
Processes that adhere to job descriptions and policies
Quick cycles from demand to supply
Unified master data for contracts, prices, and suppliers
Transparency throughout all processes from start to finish, making it easy to identify disruptions and to monitor supplier performance and risk
Improved collaboration between Procurement and the business
"At PwC, we help you develop your strategic and operational purchasing capabilities to ensure that your organization procures the right materials and products at the right quality and price, in the right way."
We assist you with the following services
- Digital transformation including needs analysis, supplier selection, strategy design, processes, organization and functionality, implementation, and change management
- Sustainability - supplier base and procurement strategy including Environmental, Social, and Governance (ESG)
- Resilience and risk management
- Procurement Target Operating Model (TOM)
- Category management including category strategies and purchasing plans
Digital procurement
The increasing number of global crises over the past decade has reinforced the strategic role of the procurement organization in creating resilience and control. Along with the growing demand for sustainability throughout the supply chain, this has driven the need to digitize the S2P process.
When implementing digital solutions, companies now prioritize business criteria over technical requirements, focusing on improved processes and the specific needs of each organization. This approach reflects a growing understanding of the importance of user adoption as a key factor in maximizing the effectiveness of digital solutions.
Despite this, many CPOs struggle to realize the values that the S2P process can create. In many cases, investments have been made in some type of technology but the expected savings have not been realized. Often, success is not about which tool has been chosen, but about how it has been implemented.
We have extensive experience in digital transformations and can help your company not only implement new digital tools but also ensure that your processes and organization align with the opportunities these technologies offer. Additionally, we engage your employees in the journey from day one.
Sustainable procurement
Our world is at an ecological, social and economic tipping point where megatrends are driving the sustainability agenda, presenting both challenges and opportunities for society and businesses. Procurement is in a unique position to drive the dialogue about sustainable supply chains and deliver long-lasting value impact. To do so, sustainability needs to be integrated into everything Procurement strives for, decides, and implements, and it needs to be embedded in strategy, processes, KPIs, and behavior to ensure resilience and efficiency.
Our experts in Procurement and Sustainability can help you to identify, plan and realize opportunities that result in Sustainable Procurement practices.
“Two-thirds of the average company’s ESG footprint lies with suppliers. Procurement leaders who take bold actions can make a significant difference for sustainability.
Supply Chain resilience through procurement (Supplier Risk Management)
The business environment has become more complex and volatile, resulting in constant supply chain disruptions. Predictions reveal that the frequency of supply chain disruptions will only continue to rise. These often unforeseen events heavily impact business continuity if not carefully managed, and acted upon fast.
Procurement needs to take a coordinating role in aligning and managing a variety of risks and be clear on responsibilities towards other disciplines. But full risk coverage comes at a cost and companies must find the optimal balance between risk appetite and willingness to cover the cost of resilience.
We understand the common issues to Supply Risk Management and can help you build your SRM capabilities. We use a structured and holistic approach to identify, assess and address your supply related risks based on your specific risk appetite.
