Top business leaders know it: Procurement is a high-impact activity that can enhance a company's performance and significantly improve the bottom line. As a result, today's executives are expecting more savings than ever – savings they can measure in terms of earnings – that increase year after year.
However, truly maximizing the value of procurement, and ensuring that savings opportunities are optimized and fully recognized, is not a simple practice. It requires deep expertise across a wide range of buying categories and processes, an array of tools, technologies and information, finely tuned and well-integrated processes, and a commitment to ongoing measurement and improvement.
Electool brings all of these elements together to provide you with a complete procurement solution that supports all procurement-related processes – from finding savings through sourcing to ensuring savings are realized, through effective savings implementation and transaction management to ensuring ongoing cost improvements, through category management. Whether you need us to fully manage non-core categories or manage certain processes, our goal will always be to help you address more of your spend, identify more savings, and drive more euros to your company's bottom line.
We organize our services around three key words: find, get & keep - that is, we perform our services in order to find savings, get savings and keep savings
Every procurement professional knows that delivering cost reductions starts with finding savings and a strategic approach to sourcing. But most companies don't have the range of expertise, information, and tools to effectively source all strategic and tactical buying categories. In fact, many purchases never get sourced at all. Electool’s experts can help you achieve results in new, typically under-managed categories and tactical processes while you focus your existing resources on improving savings in more strategic categories. As a first step we help you find the savings.
// Quick view
Our quick view service means a quick screening of the company spending. During this, we look at the most significant purchases according to the Pareto principle and look for areas where the company may reduce its purchasing costs the most quickly.
In the first phase, we look for opportunities to reduce purchase prices according to the Total Cost of Ownership model, then in the second phase we focus on transaction costs.
// Portfolio analysis
The goal of this approach is to analyse purchases of a company from the aspect of prices and to compare the prices of the company with market prices. Within this screening, we do not only obtain information related to prices but we also identify which products may be procured using auctions, and express savings and efficiency improvement opportunities in figures.
During this screening, appropriateness of purchases (product and service groups) for auctions is established and they are set in a priority and implementation order, and the type of auction and tactics to be used to purchase each product is also determined.
// Total corporate spend analysis
We perform full spend analyses for companies in order to discover savings opportunities. Spend analysis enables companies to summarise, examine and analyse expenses and purchases from the aspect of purchasing. This inspection fundamentally contributes to discovering the reasonable use of electronic procurement systems (sourcing, auction, market place) within the organisation.
This screening indicates, among others, how many transactions occur, what raw materials a company orders and from how many suppliers. Inspections of this character are substantial as practical experience shows that screening itself means a cost reduction by 5% because the company becomes aware of its spends. Complexity of the analysis results from the fact that company management systems support this kind of data reporting only to a limited extent.
Strategic Sourcing: Experts and insight to improve your results
Our dedicated experts bring truly unique and valuable category expertise that goes well beyond sourcing know-how. By working day-in and day-out in their respective categories to help dozens of companies each year, they have extensive knowledge of the supply base and deep insights into pricing levels, market dynamics, and category-specific cost drivers. Our experts apply this insight along with the best sourcing strategy and an arsenal of tools and information to help companies achieve the best sourcing results.
Because our sourcing professionals know that one strategy does not fit the dynamic nature of all buying categories, they apply the right approach in each situation. Whether employing inter- and intra-company aggregation, reverse auctions, should-cost modelling, or traditional strategic sourcing strategies, our experts follow a fact-based process aimed at achieving optimal and implementable results.
To drive better results faster, our experts leverage an extensive inventory of tools and templates, including eSourcing technologies, data gathering and RFI templates, a comprehensive supplier database, and price benchmarks. Our category experts interact on a daily basis with our professional buyers, sharing real-time information about supplier performance, capabilities, contractual commitments, and transaction volumes to accelerate and improve sourcing results.
Electool's proven sourcing capabilities will help you:
By working day-in and day-out in their respective categories to help dozens of companies each year, they have extensive knowledge of the supply base and deep insights into pricing levels, market dynamics, and category-specific cost drivers.
Some of Specialty Categories
The Path from Sourcing to Savings
As much as they add up, savings from sourcing only appear on paper. They won't show up on the bottom line unless preferred suppliers are used, contract terms are upheld, and policies and procedures are followed. This means that users must come to trust that finding, ordering, and receiving the right items from preferred suppliers will be a painless process with a successful outcome. Frustration with inefficient and ineffective suppliers, processes, or tools often leads to maverick buying, resulting in lower compliance and lost savings. Frequent maverick buying can also reduce leverage with suppliers and impair visibility to data needed to drive further cost and supplier performance improvements.
Electool can help you maximize savings realization by transforming and automating the purchase-to-pay process and establishing well understood buyer and supplier processes.
Source-to-Pay Transformation & Automation: The power of people and technology
Right from the start, we apply formal quality- and process-improvement approaches, to identify opportunities for employing best practices, streamlining activities, and eliminating or automating non-value-added tasks. We work closely with your team and category stakeholders to develop efficient, standardized procurement processes, policies, and procedures as well as to leverage procurement tools and technologies to simplify, monitor, and analyze your purchasing activities. Along the way, our process and integration specialists help you develop standards for content, connect with suppliers in the most effective manner, and design and implement best-practice-based processes that work for your organization. Whether we use your technology or our Fluenta, the result is a scalable foundation, designed to easily and efficiently support new suppliers and increased transaction volumes.
Implementing faster for improved savings realization
If you're like many companies you have focused your best procurement people and resources on your most critical buying categories and activities. Unfortunately, that could mean you are leaving savings opportunities associated with non-core categories on the table. That's why many companies are looking to outsource procurement activities for select buying categories or business processes. By leveraging Electool's world-class procurement operation, these companies tap in to significantly greater procurement results in as little as 3 months.
Flexible solutions to meet your needs
Whether you need a comprehensive procurement outsourcing solution to address all of your non-core purchases, or you need to expand your existing procurement capabilities to cover new categories or more effectively manage certain processes, Electool offers flexible outsourcing solutions to help you transform your procurement organization into a true performance driver