Procurement

structure
 Procurement
Maturity
Assessment
A Procurement Maturity Assessment is an independent detailed
assessment of your procurement function and provides you
with a bespoke action plan for improvement, a baseline to
measure improvements, as well as a benchmark scores against
similar institutions. The purpose of this is to help institutions to
understand and improve the efficiency and effectiveness of
their procurement functions, which can, in turn, lead to
significant efficiency savings.
5 STEPS
Visibility

• What is spend visibility and does your organization have it? Quite
simply visibility is having a clear idea of what your business is buying
across all categories of spend, “who” your buying from and how
much it is spending. Many organizations rely on manual processes
which make it impossible for them to know how much they are
actually spending.
• If this is a problem your business has, then solving this spend
visibility issue is the place to start. One solution is to carry out a
spend analysis program to identify categories where your
organization overspends and to analyse which suppliers are the best
fit for your company. Implementing a cloud based spend
management platform will make it a lot easier for your company to
manage this process in an ongoing fashion.
Control

• Having identified how much your business is spending, you will probably have
discovered that there are some areas where you can make changes. You may
need to implement spend control into your business processes to ensure that you
avoid some of the purchasing mistakes your organization has made. For example
you may need to look at restricting the permission of who in your organization is
allowed to purchase from particular categories. Your organisation may also need
to renegotiate contracts and ensure that your staff purchase from preferred
suppliers in order to reap cost saving benefits.
• Organizing all of these factors might seem like an administrative nightmare. Many
organizations get stuck in this phase because whilst they know there is a problem
they don’t have the time or resources to deal with it.
• The answer lies in introducing a sytem to handle the process smoothly for the
organization. You can adopt a web-based, pay-as-you-go spend management
solution (such as Claritum) to help you define a process for your business. This
will enable frontline buyers within your organization to access historical
information, such as past performance and product quality in real-time to help
them select the right supplier and price for their needs.
Efficiencies
• Organizations in this phase know what they
are spending and have implemented controls
into their purchasing process. Now they need
to work out how to optimise their use of
resources. Your business fits in this category if
you know you need to automate your
business processes to take things to the next
level.
• Common problems for organisations in this
phase include the need to free up staff from
administrative tasks to focus on being more
service oriented and adding more value to the
organization.
Savings

• Companies at this stage may be looking to address any opportunities that are being lost through
ineffective supplier management and collaboration and will want to maximise savings and discounts.
• Technology can play a key supporting role in delivering savings from suppliers by providing accurate
intelligence and enabling truly collaborative supplier management. A cloud-based spend management
platform like Claritum allows companies not only to track supplier transactions but to rate them on their
performance. This approach allows buyers to build up a supplier profile over time that leads to more
effective buying decisions and ultimately savings for the company.
• A good example of a company in this phase was a fast growing financial services company who were
looking to make cost savings and efficiencies. The procurement team needed a solution that allowed
controlled, remote access and ordering capability for the entire user community within tightly controlled
regulatory and spend limits. Claritum were able to help by implementing a Customer Catalogue to 5,000
users across the UK. Authenticated users were segmented by role based permissions to provide a high
degree of control over who could view and order and what they could spend.
• Claritum focuses on Significant, Measurable and Sustainable savings over time.
Create Value

• Creating value is all about providing a better, more flexible service to your
customers and providing an efficient process for your employees.
• Today’s customer isn’t always looking for reduced prices, sometimes what is more
important to them is a smooth buying experience and a company that delivers on
their expectations. The buying process has changed over the last 10 years. The
internet has revolutionised the way we all do business and today’s buyer is looking
for solutions that make their lives easier.
• Claritum’s solution provides web based catalog storefronts. We have found that
providing a familiar procurement experience for users results in a high level of
adoption and usage. Leading to increased profitability and sales for the companies
that implement them.
Use of aluminium on different sectors
• According to the USGS study on the global fows of aluminium, its end
uses were distributed as follows, as of 2006 (Menzie et al. 2010):
• buildings (32%)
• engineering and cable (28%)
• packaging (1%)
• transportation (28%), including automobiles (16%)
• other (11%
 USE OF
ALIMINIUM IN
DIFFERNEMNT
SEGMENTS
Macro economic factors support the sustained growth in aluminium demand
Market balance (haves and have nots)