Rethinking procurement

Sustainable action is the prerequisite in order to stay ahead of the curve. Reputational damage or fines are imminent if companies disregard laws and regulations. The public and legislators are increasingly holding companies accountable. The Supply Chain Act is one of the legal regulations designed to strengthen compliance with due diligence requirements in the value chain. Organizations that are solely driven by these external factors are perceived as reactive. Companies that see sustainability as an opportunity however and pro-actively address environmental, social and economic factors are more attractive to customers and investors - who are increasingly critical in their decision-making.

What is needed is a sustainable transformation of companies. Together with our clients, we determine the level of ambition and a target picture. We use this to develop a sustainability strategy.

Sustainability - building a responsible supply chain

Purchasing plays a key role when anchoring sustainable action in the company and the supply chain. Besides the challenge to create stable and resilient supply chains, purchasing is asked to make its contribution to sustainability. This ranges from CO2 reduction across all commodity groups and the supplier portfolio to business partner selection within the value chain.

Calculating the CO2 footprint along the value chain

Sustainability aspects are increasingly integrated into the supplier selection processes as criteria besides traditional ones such as price and quality. This includes a detailed CO2 calculation for products and services along the value chain. In "Green Lever Workshops", we work with our customers to develop ideas and measures for optimizing sustainability criteria in the supply chain, for example CO2 footprint optimization.
Sustainable action needs to be embedded in all corporate functions – from research & development to purchasing, production, supply chain, marketing and finance. That's why our projects involve key decision makers to ensure that sustainability is broadly anchored in the company.

Digital strategy and roadmap for procurement

Should procurement processes be digitized end-to-end or only optimized at certain points? Which applications are needed? What is the existing system landscape? How are the roles and skills of buyers changing? These are typical questions that we answer together with our customers based on our years of expertise. We not only create more certainty but also provide our customers with additional arguments to obtain the financial means to further implement a digitization roadmap.
 

Specification and selection of procurement software

What are the key pain points? Which business goals should be better achieved with it? We use design thinking and agile methods to clarify the specific requirements for potential software. We incorporate a procurement perspective, but also from an IT perspective. We bring the requirements into a structure, so that these can not only be used for a tender, but their realization can be tracked up to the implementation.
In the next step, we investigate which software providers on the market can cover your requirements. In doing so, we ensure a neutral system selection. Our selection process follows a 360° logic. We provide support during the tendering process up to the negotiation of the contract with the software provider.
 

Procurement software implementation

Together with our subsidiary aneon we accompany and control the software implementation worldwide. We have traditional and agile implementation methods at our disposal. Especially during implementation, it is very important to understand the customer's requirements exactly. As H&Z we see ourselves as a challenger to optimize the different processes and commodity groups before they are implemented.

Fast cost reduction with head, heart and hand approach

In situations with high cost pressure, it is necessary to reduce external expenses in the very short term in order to generate an immediate positive bottom-line impact. We focus on your existing suppliers and use benchmarks as well as fast applicable analysis methods like Linear Performance Pricing (LPP) or our cost calculation solution to prepare renegotiations with suppliers. In addition to fact-based arguments, our negotiation experts use game-theoretical elements to develop the negotiation strategy. Tightly scheduled H&Z Supplier Days, a standardized approach by H&Z, are very well suited for the quick realization of savings. Our experts provide support until the successful execution of the negotiations.
 

Holistic Value Creation Plan

The main result of our cost-out projects is often documented in a holistic Value Creation Plan (VCP). This includes future product group strategies as well as specific optimization ideas and the new way of (cross-functional) cooperation for a sustainable successful implementation. Our clients benefit from our extensive expertise, which spans numerous industries and commodity groups in direct and indirect materials. We support companies in the creation and implementation of the VCP. From the initial data analysis of the procurement volume, through cross-functional leverage workshops, to the identification of alternative suppliers and the commercial negotiations based on a coordinated negotiation strategy. This process, which often takes several months, is supported by our professional project management, a control tower and specially developed software solutions for implementing measures.
 

CVE as a lever for cross-functional cost reduction and product optimization

With our Cost-Value-Engineering (CVE) method we get to the bottom of product costs in direct material. We put the product (often even physically by means of reverse engineering) on the table and examine it in all its individual parts from a functional, commercial and technical point of view. If it turns out that technical solutions are too expensive or have been developed past the customer's benefit, we introduce alternative proposals. The modified product therefore does not have less customer benefit. On the contrary. In many cases, it meets the needs of the market more than before.

Analysing procurement processes and procurement strategy

Our procurement performance analysis is the starting point for reorganizing a procurement organization. Starting with a review of the strategy, we then examine all areas of procurement and provide a qualified assessment. Is the organization efficient? Is it well integrated into the company's processes? How well does procurement use the opportunities of digitalization? A final assessment reveals the maturity level and shows the potential for optimization.
 

Shaping the transformation of procurement

The transformation of procurement must be supported by all team members. It is not always just about strategic issues. Sometimes, management already knows exactly how procurement should be positioned in the future. However, there may be uncertainty about how to achieve the desired goals. We accompany companies on this path analytically and pragmatically. In doing so, we follow the plans of the management just as closely as the needs and interests of the employees.