Unlock Sustainable Cost Savings with the BravoSolution Get More! Approach

“Cost reduction is the top priority for CPOs as they look to sustain business growth in a slowing market.”

-The Deloitte Global CPO Survey 2016

According to a 2016 survey from Deloitte, three quarters of CPOs cite cost reduction as a strong priority for 2016. CPOs will focus on eliminating redundancies and consolidating spend in order to generate value for their organization. This isn’t a new concept. But, to guarantee desired outcomes procurement needs to do things differently.  That is why they need the BravoSolution Get More! approach:

01-Know-Your-Spend

Many procurement departments lack the resources, time and technical expertise to thoroughly consolidate and analyze their spend data which results in missed savings opportunities throughout their organization. Mapping spend data provides the basis for identifying opportunities and risks, and is the foundation for cost reduction initiatives, improving the value you obtain from the supply base.

  • Who is spending and on what?
  • Which suppliers supply to different parts of the business?
  • Which departments buy the same goods and services?
  • What portion of your spend is with your top suppliers?
  • How many transactions do you process and what are the associated costs?

02-Drive-Savings

The opportunity for significant savings sits across the organization. An effective cost reduction program considers the full range of procurement levers across an integrated view of the strategic procurement process:

  • Demand: is there alignment between your wants and needs?
  • Source: are you using a category planning process to drive a more holistic view of spend? Do you have an effective supplier management process that appropriately aligns risk, effort and reward? Do you have enterprise visibility and control over all your contracts?
  • Fulfillment: have you ensured your P2P processes enable compliance and risk mitigation?

03-Take-Savings-New-Level

Just when you thought you have done all you could to find incremental savings, there is more you can do! The next step is to make the connection between complex categories and the business’ charter to reduce the total cost of ownership for your most strategic areas of spend. By having the visibility and flexibility to make choices based on the best allocations of your business, balancing suppliers’ pricing and capabilities with buyer business constraints and preferences, you can generate incremental and ongoing savings.

04-Capture-Track-Report

In order to sustain your cost efficiency efforts, you need to have end to end visibility and management of the activities at every step of the procurement process:

  • You need to track all savings from the initial idea to final benefit sign-off
  • Know the total lifetime value of your suppliers
  • Showcase value by linking performance to key financial indicators

The BravoSolution Get More! Approach Unlocks Untapped Savings & Value

At BravoSolution, the unique combination of people, process and industry leading strategic procurement technology is helping procurement leaders worldwide optimize their strategic sourcing initiatives to deliver 1.5 to 2x more savings than their peers, ultimately contributing significantly more to their bottom line. See the approach below:

Today’s Challenge: A Typical Complex Spend Map

With so many businesses, a global distribution network, and a fragmented supply base, it is very difficult to uncover savings opportunities.

Conventional Next Step: Effective Categorization Across all Your Categories

The next conventional step is to validate with basic Kraljic to help identify savings opportunities. But there is so much more using a different approach to unlock strategic savings.

Unlocked Next Step: Apply the BravoSolution Get More! Approach to Unlock Untapped Savings & Value

By applying the right combination of technology and sourcing expertise to each of the categories in your portfolio, you will achieve the visibility and flexibility needed to make informed choices based on the best allocations of your business, while balancing suppliers’ pricing and capabilities with your business constraints and preferences.  The top performing procurement teams that use decision optimization with the Get More! approach often achieve double digit savings for each category.

With cost reduction a top priority for CPOs in 2016, look to BravoSolution and find out how BravoAdvantage can deliver exceptional bottom line results for you. And, if you are finding your current solution is not delivering on the promises made, see how BravoSolution can help you achieve your goals to Get More! Learn more about BravoAdvantage >>


Calculate Your Potential Savings Here!

See how the Get More! savings calculator can provide valuable insight into newfound results for your organization.