Consulting Services in Purchasing and Procurement

Supplier Management

The main objective of the supplier management is the sustained reduction of procurement costs. Systematizing supplier structures will be followed by analyzing order values and volumes. That will provide transparency. Subsequently, product specifications will be prepared, tender invitations provided and negotiations conducted.

Operational ExcellenceStrategic Excellence
  • Optimization of conditions
  • Procurement of investment goods
  • Purchasing co-operations
  • Professional conduct of negotiations
  • Benchmark analyses
  • Make or Buy
  • Building up/Intensification of strategic supplier partnerships
  • Moderation of development processes
  • Integration of suppliers

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Material Group Management

Security of supply at optimum conditions is the objective of this consulting segment. A customized products group structure is the basis for further steps. Building up on it, Kerkhoff Consulting develops the necessary products group strategies.

Operational Excellence Strategic Excellence
  • Structuring of material groups
  • Building up transparency
  • Realization of bundling potentials
  • Drawing up of tender documents specific to material groups as needed
  • Material group strategies
  • TCO observations
  • Approaches in value analysis
  • Procurement market strategies
  • Building up of a strategic supplier pool
  • Market influence models

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Global Sourcing

Those wanting to profit from global sourcing need to answer vital questions: Which markets will be relevant even in the future? How can a high quality level of the merchandise be ensured with ever more economical conditions? And how can it be guaranteed that products are manufactured according to social standards? Kerkhoff Consulting supports its clients from the analysis all the way to the supplier on location.

Operational Excellence Strategic Excellence
  • Supplier management/ Optimization of terms
  • QA-System / Re-Audits
  • On-site Support
  • Studies/ Analyses
  • Make or Buy
  • Founding local procurement office
  • Local purchasing agent/ Material groups accompaniment
  • Strategic supplier development

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Processes

Purchasing has long since been more than simply the procurement of goods and haggling about economical conditions. Today, it‘s important to optimize the entire process chain. Operative and strategic processes in purchasing and at the interfaces are recorded and evaluated. Weak points in the existing process model are thus identified and the necessary changes made.

Operational Excellence Strategic Excellence
  • Process analysis and process optimization / Planning and Purchasing
  • Creating a Process model
  • Increasing process quality by using formalized procedures
  • Introduction of process organization
  • Redesign und expansion of existing processes in strategic purchasing
  • Standardization of processes from purchasing to related areas and suppliers

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Organization

The purchasing department has a central control function in the enterprise. But purchasing will only be a guarantor for success in a networked organization. Especially if several locations or companies are aiming at joint, optimized purchasing. Kerkhoff Consulting provides assistance with the centralization, decentralization, and organization of a purchasing department.

Operational Excellence Strategic Excellence
  • Requirement profiles for purchasing staff
  • Job function descriptions
  • Organizational structure analysis
  • Ascertainment of communication structures
  • Reorganization of purchasing organizations
  • Introduction of CPM
  • Change management
  • Post-merger integration

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Supply Chain Management

Finding optimum volumes at the optimum point in time is a complex task for the supply management. Because purchasing and inventory management frequently work against each other: Buyers want economical conditions when taking large volumes; inventory managers like to keep their warehouses free. Kerkhoff consultants can look at it from the outside and will help balance out interests and define optimum volumes and points in time.

Operational Excellence Strategic Excellence
  • Analysis of the degree of supplier integration
  • Transparent representation of the process chain and of the bearing points contained in it
  • Compilation of inventory data and realization of short-term reduction possibilities
  • Introduction of cross-inventory management
  • Introduction of cross-inventory management
  • Optimization of procurement logistics in combination with distribution logistics
  • Planning synchronization
  • Complexity management

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Purchase Financing

Kerkhoff consultants will keep all risks in sight. They will help in the organization and implementation of customer-specific and product group-specific financing concepts to ward off currency risks and loss of receivables outstanding. The use of different models reduces purchasing costs and sets free liquidity. The result will be greater planning security.

Operational Excellence Strategic Excellence
  • Discount approximation and optimization
  • Extension of payment terms
  • Refinancing of supplier credit
  • Ensuring security of supply through credit rating checks
  • Hedging concepts for raw material purchasing
  • Reverse factoring in support of global sourcing activities
  • Financing approaches for optimizing order quantities

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Procurement Controlling

Many organizations lack the necessary overview of their purchasing department and thus their expenditures. Kerkhoff consultants meet this challenge and will provide transparency in purchasing. That allows checking for optimization potentials and provides bases for decision-making for general management.

Operational Excellence Strategic Excellence
  • Spend analysis
  • Building key systems based on existing information sources
  • Introduction of reporting systems
  • Ascertaining the main external factors influencing the purchasing performance
  • Lieferantenbewertungssysteme
  • Building a hierarchical key and reporting system
  • Definition of planning objectives at material group level
  • Introduction of a balanced scorecard
  • Performance measuring guidelines

 

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Risk Management

Supplier insolvencies are a serious threat. Those losing an A-supplier will need a replacement as fast as possible. Kerkhoff Consulting will check where single sourcing and where multi sourcing strategies are necessary. Purchasing will thus be more independent of crises and recessions.

Operational Excellence Strategic Excellence
  • Identification of risk sources
  • Introduction of formalisms to ensure the risk assessment in daily business
  • Definition of risk classes
  • Contract analysis and design
  • Introduction of a risk management process
  • Derivation of contingency plans for risk classes
  • Evaluation of material group strategies by risk classes
  • Compliance guidelines

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