Procurement and supply chain management

You’ve got your business strategy in place. It’s planned in meticulous detail. But without operations that can support and enhance your strategy it can never be the success you envision. Procurement and supply chain are fundamental functions for efficient operations, and key to success.

The motivation to review Procurement and supply chain methods in times of economic downturn have typically been to cut costs. The emphasis now is changing to more strategic cost reductions and a focus on value-adding activity. Altering Procurement and supply chain methods create a more efficient process that meets the shifting demands of customers and markets.

Why change your procurement and supply chain?

Whatever sector you work in, the landscape is always changing. Sometimes this is driven by changes in technology, other times by customer behaviour and expectations, or perhaps new legislation is having an impact. Either way effective supply chain management is needed to ensure your business can meet expectations as or when they change.

While existing supply chain and procurement approaches were fit for purpose at the point of implementation, companies need to ask themselves if those processes are still agile enough both for today, and for the future?

To help answer this question we'll analyse your existing supply chain strategy and then deliver a solution that helps you optimise the flow of goods and services. Some of the ways we achieve this include:

  • Removing complexity - By simplifying and standardising ways of working we ensure that wastage is reduced in terms of costs and time. Our Scoop digital supply chain tool delivers on average a 10% improvement in network costs and over 7% in inventory reduction
  • Reducing costs – We look to make sustainable cost savings that consider immediate demands and longer term performance. Strategic Procurement and Supply Chain insights can reduce supplier costs by up to 15%
  • Growing revenue - By taking advantage of opportunities creatively, digitally and globally we can give you an edge over your competitors. You’ll be able to react quicker, enter new markets with confidence, and get to market with a new product or service faster. Our approach to Global Operating Models allows you to service your commercial structures more efficiently producing revenue improvements of up to 10%
  • Using expert insight - We collate and analyse the important data and put it at the heart of decision-making. This is vital for securing buy-in across the business for any proposed changes to your supply chain or procurement methods.

The key to success is recognising that traditional approaches and business models may no longer work. It’s about having a clear, forward-thinking strategy instead of relying on short-term tactical approaches. In short, successful organisations align costs with business strategy.

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How can technology improve your supply chain?

Siloed working practices, inconsistent and duplicated processes, time consuming manual work and fragmented systems; are all common challenges to procurement and supply chain professionals.

Digitisation is evolving traditional transactional supply chains into integrated, connected ecosystems, underpinned by analytics and the latest technology and digital tools to create levers organisations can use to address their key challenges.

The Digital Supply Chain allows for full information transparency, communication and collaboration across the chain from new product development to customer engagement. Silos are dismantled through technology enabled transformations, a powerful combination of business redesign, technology platforms and day to day usability.

PwC has created a global insight and analytics platform to help accelerate our clients Digital Supply chain journey. PwC also take an agnostic and holistic approach to technology, helping organisations choose and embed the optimal solution to suit their needs and drive productivity in their operations. This approach has seen clients experience increases in revenue of beyond 6% and cost base reduction of over 10%.

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Why choose PwC?

Changes to supply chain management can have a wide impact on your business. The breadth of our offering and the depth of our expertise means that we work closely with expert teams in technology, tax, compliance, other operational disciplines and more to deliver the exact solution you need.

Our global presence of over 450 practicing Operations specialists in the UK and 3000 globally, means you have access to consultants with experience in markets and sectors around the world. So we can scale and flex our support to suit your needs, however they develop.

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How far along are you on your Digital Procurement transformation journey?

The pace of innovation is increasing rapidly - end to end digitisation is on the increase.

The digital landscape is complex with many different solutions to select. Procurement teams are under pressure to deliver more for less and disparate systems leave procurement professionals ill-equipped and without facts. Organisations must consider how to become fit for the digital age. We combine deep procurement, technology and transformation experience to help clients respond to these challenges.

Digital Procurement can help organisations to:

  • Enable organisations to gain more efficient, faster and greater spend activity insights
  • Enable cross-functional collaboration and proactive business partnering
  • Enhance visibility of commitment and decision making
  • Improve value for money, cost to serve and outcomes for internal customers and suppliers
  • Have more strategic, less transactional processes
  • Improve contract compliance and reduce third party risk
  • Have higher automation rates, with data-driven decision making

PwC has the ability to architect the transformation to create a high performing team that adopts technology and embraces change:

  • We can help you understand the digital landscape and identify the most suitable digital solutions for your business and team
  • Our diagnostic tool and experience of target operating model design can help to understand and build the case for change
  • We can help your procurement team to drive value in the business using fact and data-driven techniques
  • We can help you automate transactional processes and work with your team to upskill staff and re-focus them on strategic activities 
  • Our cost reduction programmes can release the cash to invest in new technology

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Contact us

Leon Smith

Leon Smith

Retail & Consumer Partner and UK Procurement and Supply Chain Practice Lead, PwC United Kingdom

Tel: 07850 907714

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