Boer & Croon Procurement Solution

The market has changed significantly for a lot of organisations in recent months. Whether demand has now dropped, or has actually picked up in some quarters - then it's a case of the market changing faster than the organisation. In all cases, it is preferable to have control over the entire value chain, whereby procurement is an essential part.

Boer & Croon's experience, expertise and network enables us to help organisations. This ranges from an analysis in order to identify direct cost savings, to a professionalisation of the Procurement position and maximising added value.

To be able to provide the best possible service, we have joined forces with Adjust, which has distinguished itself since 2003 with a no-nonsense approach in the Procurement field and has undertaken assignments for ASML, Nike, Danone, AkzoNobel, Aviko, Van Oord, amongst many others. We also draw on the vision and experience of Bert Kruisdijk, Associate Partner at Boer & Croon and responsible in the past for improvement trajectories for Procurement positions at numerous retailers, the NS (Dutch National Railways) and a number of hospitals, including the Isala Hospital in Zwolle.

Guido Winnink explains: " Especially when it comes to indirect spend - as in procurement which is not directly related to the core business - contracts are often not optimised. You rarely have to tell a metal company the best way to buy metal; this is the core of their revenue model. There are often great opportunities on the outside - for example, in transport, storage, with temporary agency workers and packaging materials. We have a large benchmark dataset and specialised tooling for quickly identifying the category with the greatest potential for savings. With the help of our models, we determine the optimal strategy for achieving results. Take, for example, Total Cost Optimisation, value engineering, process optimisation and bundling of procurement volumes."

In order to professionalise Procurement positions on a long-term basis, they need more than the right kind of contractual agreements. "Cost efficiency is a hygiene factor in Procurement, which is something that should always be present. Where Procurement distinguishes itself is in adding value," Bert Kruisdijk believes. "That does not necessarily mean paying as little as possible. Procurement needs to be in line with the organisation's core values and play a role in realising them. Creating value through Procurement is done by: 1) Cutting down on costs; 2) Avoiding incurring costs; and 3) Achieving the organisation's strategic goals with the help of suppliers."

At the same time, you have to consider how a centralised procurement policy can best be implemented. The head of an operational department is responsible for the (financial) results of her/his own department. Procurement cannot and should not take over these responsibilities, and it should not be an obligation to always go through the ''Procurement desk''. An obligation that lacks broad support seldom produces the desired change in behaviour. This change is much more effective when Procurement serves as a valued support role. A trusted advisor.

Kruisdijk has set up and managed various procurement transitions. An annual saving of approximately €100 million was achieved at the NS (Dutch National Railways), and considerable savings were also achieved at various hospitals in two separate phases. It is important that savings are the catalyst for change and professionalisation, not the goal in itself. The goal is always an optimised Procurement role.

That speck on the horizon is a good start for an optimal Procurement role. However, it is especially worthwhile if you can also actually reach it. An investment in Procurement often pays for itself within a short space of time, yet it must be done well and with a sufficient amount of decisiveness. Boer & Croon can provide this at various levels. We have a rock-solid network of proven leaders, including CFOs, COOs and CPOs who can spearhead this transition from the top down. We have access to the analytical tools to define a category-by-category strategy that weighs quality, risks and costs. And we have a pool of talent who can effect change in behaviour through a structured approach and personal connections.

As stated earlier, Procurement is much more than simply making the cheapest deals with your suppliers. It is a support and advisory role, which is especially valuable when it is handled in a professional manner and is in line with the organisation. Nevertheless, it is not always clear where to start. How can the overall vision be translated to Procurement? In which area do you want to be the best? Where do you perform below average? And is that so bad? In short: what should the procurement strategy look like?

Not everything in a multi-year plan can be of equal importance. Choices will have to be made, at least according to the order of urgency. Boer & Croon helps organisations to map out priorities, organisational maturity, and to draw up an ambitious and clear procurement strategy. Moreover, with the abovementioned network, expertise, and experience, this strategy can also be rolled out successfully. The Procurement department becomes best-in-class and significant savings are achieved along the way.

Are you curious about what we can do for your organisation? Then please get in touch with Haico Spijkerboer, Partner, Stijn van Hooff, Manager or Bert Kruisdijk, Associate Partner, by emailing b.kruisdijk@boercroon.nl.