Optimize Cost
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.
Spend analytics is an important tool for any organization looking to grow and succeed. By analyzing spend data, organizations can enhance their ability to make well-informed decisions, for example, by using spending insights to reduce unnecessary costs and negotiate better terms with suppliers. PIR will support your organization in turning messy data into tangible opportunities through a proven spend analysis process. Our approach to spend analysis ensures thorough analysis, valuable insights, and identification of opportunities.
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Opportunity assessment is essential for identifying and prioritizing potential areas for cost reduction and value creation within an organization. We use a proven value lever framework to perform a detailed analysis and identify opportunities for improvements and savings. With extensive experience, we support our clients in creating thorough assessments that enable our informed decisions, prioritization and allocation of resources to the most cost beneficial initiatives, and mitigation of risks associated with new initiatives.
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Strategic sourcing is essential for organizations looking to optimize their procurement performance. It involves a comprehensive approach to managing purchasing activities, focusing on long-term partnerships with suppliers, total cost of ownership (TCO), and risk management. A professionally conducted sourcing process identifies best value on the market and builds a baseline for sourcing decisions. PIR’s strategic sourcing process has been proven in a large number of assignments in various industries and scopes, securing long-term benefits for the customer.
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Value realization and profitability improvements are essential for any organization aiming to maximize its return on investment, optimize resources, and ensure sustainable growth. In today’s competitive market, it is not enough to merely implement strategies and solutions; organizations must actively measure and work with realizing the value derived from these initiatives. Our proven framework builds on a systematic approach that promotes ambitious goals and sustainable results.
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Optimize Cost Engagements
Facility Management
The client had low attention on procurement of FM services and needed help to gain control of procurement of FM services and to identify and realize savings potentials.
Industry: Industrial Goods & Services
Cost optimization of indirect spend at ICA
Summary
To adapt to a new, more challenging market, ICA underwent a significant cost reduction program and re-organization. As part of this initiative, ICA approached PIR and Aurentor for assistance in reducing their indirect spend.
The project had an immediate positive effect on the bottom-line result and will in total reduce ICA’s indirect spend by 300 MSEK. This initiated a change in how ICA works with indirect procurement by introducing category management and instilling confidence when negotiating with suppliers, thereby shifting the scale in favor of ICA.
Background
In the face of shifting market trends, with premium assortments and stores giving way to low-cost and budget options, ICA found their position challenged. To remain competitive while managing the inflations raising costs of interest and supply, the company needed an overarching cost transformation.
One of the identified cost transformation opportunities was within goods not for retail where ICA hoped to reduce their addressable spend by 5-10%.
This target was highly ambitious and demanding, challenging the entire organization to find cross-functional cost opportunities within a decentralized structure. Many tough decisions had to be made with a top-down perspective, while they at the same time needed to stay true to the company's core entrepreneurial values, with bottom-up ownership. Additionally, the company underwent a major reorganization during the cost transformation, which increased uncertainty and raised the decision-making threshold, making cost prioritization difficult.
Industry: Retail
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
Insights in Optimize Cost
Insight
Value Realization
Why Should Procurement Leverage Value Realization? Value realization and profitability improvements are essential for any organization aiming to maximize its return on investment, optimize resources, and ensure sustainable growth. In today’s competitive market, it is ...
Insight
Opportunity Assessment
Why is Opportunity Assessment Important? Opportunity assessment is essential for identifying and prioritizing potential areas for cost reduction and value creation within an organization. It enables businesses to systematically evaluate their current operations, market conditions, ...
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Transform Procurement
As the role of procurement continues to evolve, new approaches, processes and technology is required. We have an extensive experience in transforming sourcing and procurement organizations on strategic, tactical and operational level with clients that are leading organizations in their industry.