Cost Optimization
PIR has over 20 years experience of running both complex and more straightforward cost optimization initiatives. The ability to take out cost is a central part of improving any margin. With experience of more than 1000 projects PIR has attacked a majority of spend categories and fine-tuned levers for each of these. Our methodology for cost optimization is not just an elevator pitch, you get practical solutions, feet on the ground, and both top- and bottom-line result.
You can’t make good decisions with bad data. The basis of all fact-based procurement work is a Spend analysis that answers the questions; who is buying? what do we buy? where and with whom are we buying? PIR will support your organization in turning the messy data into tangible opportunities with a proven spend analysis process.
We use our value lever tree to conduct a detailed analysis of each category to identify and verify savings potential. We use a proven workshop methodology where key stakeholders, category owners and PIR’s category experts gets together in a structured process to work through each category and challenge existing ways of working to generate cost savings initiatives. When this is done a savings initiative plan is created to realize identified savings.
PIR’s strategic sourcing process is constructed to establish supplier contracts that reduce cost, add value and mitigates risks. Our skilled consultants will work together with your organization to evaluate the potential in all supplier contracts.
We will work with your team to define the demand and provide our input to the market analysis to be able to choose a sourcing strategy using our proven category knowledge, benchmarks and well proven negotiation strategies. We will also provide continues transparent and follow-up of savings in scope and generated by using tools and a proven measuring method for following savings in five confidence levels from ide to bottom line effect.
Optimizing cost is not only done through lengthy RFP processes. PIR has over the years successfully re-negotiated mid-term contracts with improved pricing, better terms & conditions or a combination of both through its Speed Sourcing process. The impact is immediate giving the customer quick wins often within current fiscal year. Having perfected the Speed Sourcing process over the years and with PIR’s own legal team to support most contracts in scope are re-negotiated and updated after just one session with each vendor making it a valuable and efficient part of many cost optimization projects.
Cost Optimization Engagements
Vendor management of critical infrastructure rollout projects
The client, concurrently managing seven business-critical infrastructure rollout projects, had discovered discrepancies in supplier invoicing and delivery. Due to absence of established contract management processes, the suppliers had on several occasions overcharged deliveries and submitted unnecessary change requests that caused delays to the projects' implementation timelines without any consequences. To ensure successful project delivery and increase suppliers' contractual and commercial compliance, the client required support in managing the complex contracts related rollout projects.
Industry: Telecommunications
Facility Management Category Strategy
The client wanted to analyze current facility management services, composed of cleaning, reception, and food and beverages etc. to be able to assess vendor consolidation to reduce cost base.
Industry: Telecommunications
Print & Merchandise Sourcing
The client wanted to consolidate volumes and assure more competitive terms in future agreements.
Industry: Telecommunications
Discover More Solutions
Sourcing Advisory
PIR supports clients in all stages of the sourcing lifecycle, from strategy, through design and sourcing, transition as well as reevaluation of existing positions and building own capabilities.