Sourcing Strategy

Ensuring that a business is getting the best value from its suppliers is a key element of maximising profits. The sourcing strategy that is employed will often need to vary by category, balancing the purchase price against quality and service. Different drivers need to be evaluated for direct materials, goods for resale and indirect goods and services.

Crimson & Co works with businesses to set the appropriate sourcing strategy by category and then select the most suitable supplier(s) through a rigorous strategic sourcing process based on total cost of ownership. This often involves challenging preconceptions of the drivers of demand, in addition to looking at the key supply requirements.

E-Procurement

After the initial hype, e-Procurement has matured and is now delivering benefits to businesses. However, the adoption of appropriate internet based technology can be a very complex task. These technologies include online auctions, e-RFX, e-Procurement, e-catalogues and online marketplaces, ranging through a whole range of tools for both direct and indirect goods and services.

We help businesses to select the most suitable technologies for their requirements from a completely independent viewpoint. We are committed to working with businesses to determine the benefits from any new technology prior to recommending any new processes or systems.

Supplier Management

In many businesses, supplier management is overlooked. Constantly focusing on the relationship with key suppliers, underpinned by suitable performance management metrics, leads to long and mutually beneficial relationships. Additionally, supplier management needs to be constantly developing processes, systems, quality and products to ensure the aims of the businesses are met.

We help businesses to constantly build and develop their relationships with suppliers through supplier management programmes. They focus on the key requirements of the business, ranging from supplier assessment, cost reduction, quality improvement, process development through to new product collaboration.

Factory Gate Pricing

Retailers, particularly multiples, collect products from suppliers’ factories or warehouses and negotiate a discount on the previously-delivered price for the products. This is a traditional practice that has recently become known as ‘factory gate pricing’. The premise is that the collection by the retailer is a cheaper supply chain option than delivery by the supplier.

This can often be true, but equally it can prejudice the supplier’s distribution for its other customers. The key to FGP is to fully understand the supply chain costs on a customer by customer basis. Armed with this information, an appropriate solution can be designed. We help clients understand this level of cost breakdown and work out the implications of FGP.