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  • Xagonal USA
  • Contract Manufacture
  • Procure
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  • Case Studies

Procurement

Procurement Transformation

Our team has extensive expertise in Procurement Transformation programs, be they re-invigorating mature Procurement Organizations and Processes or establishing a Corporate, Above-site, organization to take the Procurement performance of multi-site companies to their next level.


Our approach is based on a core principle that Procurement is a business process in which much of the organization is involved, and not stand-alone business function. 


This requires a Procurement organization that is lean and flat as well as being comfortable with a broad business vision and entrepreneurial in its approach. It also requires a Strategic Sourcing methodology that starts with an Internal Client centric focus that defines core activities such as supply planning, supplier selection, contract strategy, negotiation strategy and key metrics from the point-of-view of the end user. This ensures Procurement activities are aligned with the needs of the organization.


We will develop, advise and execute a comprehensive program based on the principles of Category Management that is dynamic in nature, covering Processes, Systems, Organization and People.

Value Creation / Savings

For a growing company, the Procurement organization has 2 key roles to play. First, growth requires a robust Supply base that can grow with the company, so Supplier Selection is key. Second, to fund future growth current EBITDA values must be increased and the quickest way to do this is to extract value out of the bottom line. Traditional approaches use an opportunistic, 'scattergun' approach, solely in the hands of the Procurement team which not only frustrates the Procurement team and their internal customers, but also misses the big ticket opportunities that have real impact. For established companies, the larger bottom line impacts will not come from adversarial negotiations, rather, they will come from so other 'missed value' in the Supply chain.


  • We introduce the concept of Value to move beyond savings negotiation, looking for Value in areas such as Process Improvement and Demand Management
  • We define a systematic approach across all spend categories, with concrete value creation levers with case examples with detailed descriptions
  • We support capability building across the Procurement team by defining training modules, ready-to-use tools and on-the-job learning
  • We will implement guidelines for Procurement productivity reporting to ensure independent (Finance) assessment of true bottom line impact
  • We implement a comprehensive tracking tool to keep the teams on point, provide monthly reporting and a continual pipeline of Value development
  • Based on our experience, we can also develop a comprehensive Sourcing Handbook containing detailed models to support negotiations and discussions with suppliers



Procurement Compliance

 As organizations are increasingly held accountable for the ethical behavior of their entire supply chain, it becomes necessary that they have robust Compliance Policies and Procedures covering both Internal and External Practices. Drawing from our years within Big Pharma and implementing industry standard best practices in this area, we can provide and implement a comprehensive suite of Procurement Compliance policies and procedures.

  • Contract Life Cycle Management
  • Authorization Levels and Signatory process
  • Supplier Code of Conduct, covering Labor Rights, H&S, Environment, Animal Welfare, Anti-bribery and Fair Compensation
  • Internal Procedures covering all aspects from Source to Contract
  • Guidelines for the reporting and validation of 3rd Party spend and savings

Additional Procurement Services

Supplier Search, Evaluation and Select

Contract negotiation and Supplier Onboarding

Contract negotiation and Supplier Onboarding

We can undertake Search, Evaluation and Selection for the most appropriate suppliers to support tour business needs. We have experience in Direct and Indirect spend and particularly in the CDMO space. We have a robust RFx process that we could run on your behalf.

Contract negotiation and Supplier Onboarding

Contract negotiation and Supplier Onboarding

Contract negotiation and Supplier Onboarding

We can support you, or undertake on your behalf, supplier negotiations to ensure you extract the best value out of any contract and then ensure the supplier is onboarded into your company culture, with appropriate governance.
 

Supplier Relationship Management Program

Contract negotiation and Supplier Onboarding

Supplier Relationship Management Program

Ultimately, your organizations Supply Chain will be defined by the Quality and Reliability of your suppliers. We can develop and implement an SRM program appropriate to your needs and resources, with clear Governance Structure, Communications and KPI’s.
 

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