Potential assessment

Total cost focus, to ensure that the full potential is realized

EFFSO’s potential assessment service allows procurement to get a clear picture of the potential savings available in their current procurement categories. If procurement previously has focused on price per unit, procurement assessment enables procurement to re-evaluate its potential from a full category perspective.

EFFSO’s potential assessment includes a prioritization of initiatives which comprises an improvement discovery and suggestions, generation of category cards for prioritized categories and an implementation plan per category initiative. It’s a roadmap that enables procurement to make well-informed category management decisions.

Potential assessment generates several positive effects in both the short and long term. It prioritizes resources as well as activities for both procurement as well as the business. If necessary, EFFSO can also provide resources to run category projects. Or alternatively support in the areas where there is a lack of capacity.

It is not uncommon for a potential assessment to lead to customers lowering their total cost by 11 to 20 percent within the prioritized categories. Contact us if you want to know more!

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Focus on total cost delivers greater business value

EFFSO has developed and adapted diagnostic methodology that quickly identifies potential and creates an activity plan moving forward to realize the identified savings. Potential assessment clearly maps the current situation and creates a recommendation and a roadmap with prioritized activities. All in all to deliver maximum business value in both the short and long term.

We analyze the potential based on four available levers with a focus on total cost (TCO). How can we:

Improve commercial conditions?
Reduce the need?
Improve specifications?
Improve our processes?

Webinar: The value of potential assessment

Potential assessment provides procurement with a clear picture of the savings potential and development opportunities that exist within an organization’s current categories. In this webinar (in Swedish), we go through the basics of potential assessment and talk about the values that are made visible.

The basics of potential assessment

A potential assessment is usually focused on categories with a large spend volume, or on categories that have a severe impact on the business.

The potential within a category is always based on prevailing conditions and the organization’s previous experience. The assessment prioritizes improvement initiatives and includes development suggestions, creation of category cards for prioritized categories as well as a plan for implementing category initiatives.

This leads to a list of prioritized category projects, summarizing category cards for selected categories and a proposal for implementation.

Prioritized category projects – Categories are prioritized based on savings potential and ease of implementation. Improvement potential within the various categories is identified through stakeholder interviews, detailed analysis of existing agreements and processes. EFFSO recommends a “low hanging fruit” strategy, where categories with lower potential but high feasibility should be considered.

Summary category cards for priority categories – EFFSO creates category summaries for prioritized categories. The current situation is summarized in the form of purchase volumes and suppliers as well as suggestions for improvement and potential.

Proposal for the implementation of category projects – EFFSO develops an overall project plan for the implementation of category initiatives. The plan is communicated with key stakeholders within the organization to ensure feasibility.

Why EFFSO?

Incomparable knowledge

We have a 100% focus on purchasing and an outstanding knowledge of all parts of this area. We have a profound knowledge of both indirect and direct materials, and not to mention spend analysis. This profound knowledge spans across all types of categories and our broad intellectual capital is based on a well conceived set of tools, templates and methods.

We create lasting results

At EFFSO we are “doers” and specialists. We work together with you as a team to actually get the job done and get results. We enjoy a good relationship with our clients and would like to build a long-term relationship with you to ensure lasting results and a continuous influx of expert knowledge. We can help you find the right tools so that your organisation can handle all the improvements and changes over time.

A better financial outcome

We deliver credible, realised savings and ensure that you get the best possible yield from the hours spent. We deliver a start business case with a focus on ROI and charges that are directly tied to results. Our joint focus on financial results and on knowledge transfer and development in your purchasing team delivers a lasting effect.

A selection of customers by industry

Automotive

BorgWarner

CEVT

Kongsberg Automotive

Toyota MH

Energy, Real Estate & Construction

Bravida

NCC

Vattenfall

IT & Telecoms

Arelion

Axis Communications

Eltel Networks

Mycronic

Retail & Food

Ahlsell

Coop Sverige

ICA Gruppen

Menigo

Public Sector

City of Gothenburg

City of Mölndal

Swedavia

Systembolaget

Processing & Manufacturing

Boliden

Envirotainer

Lesjöfors

Services

High Chaparral

ISS

Kunskapsskolan

Samhall

Other

Bankgirot

MTR

OneMed

Stena Line

Are you looking for help with procurement?

Call us directly on +46 8 440 39 30 or use the contact form to the right and we will get back to you as soon as possible.