Procurement Advantage - Creating actionable insights

Procurement made powerful and smart.

Elevate your procurement outcomes with Procurement Advantage

We combine data, digital analytics, and expert consulting to drive informed decisions and savings in your organisation's spending. Powered by Microsoft and backed by PwC's excellence framework.

A strong, strategic procurement function is a key enabler to a future-fit organisation.

Procurement Advantage combines your data with our digital analytics and consulting capability, to help you make informed, fast and insightful procurement decisions across your organisations spend base.

PwC Alliance

Human-led, tech-powered procurement insights.

Powered by Microsoft, and supported by our specialist team, our Procurement Advantage analytics platform ingests an organisation’s transactional spend data, and rapidly identifies where money is spent, and where there may be opportunities to save or buy better. We have integrated PwC’s global Procurement Excellence framework and seven Procurement levers to focus analysis on tangible outcomes.

It gives us a single well-structured view of all procurement spends around an industry specific or best practice taxonomy. Unlike others, we bring the industry expertise to turn the data into outcomes and benefits realisation tracking and work with you to embed this into your Procurement team and organisations ways of working.

Procurement advantage

Playback of this video is not currently available

2:23

We can provide a one-off service or refresh our analysis as part of a managed service as frequently as you require. Once established, the Procurement Advantage platform integrates easily into your existing systems and ways of working for both ongoing category planning / strategy, strategic sourcing, benefits realisation, contract and supplier management.

We have analysed over $40bn of spend data, identifying over $800m in savings for clients. Are you ready to boost your procurement power?

Click and explore each service we provide below
 

Total Cost Management

Are you effectively managing all your costs? Can purchase order and invoice processing be made more efficient?

  • Should cost modelling/cost-breakdown analysis

  • Volume rebates

  • Alternative tier approach to supply chain

  • Revenue generation

  • Process efficiency

Rationalisation and Consolidation

  • Can you consolidate your product range? Use volume leverage to improve prices? 

  • Increase leverage and supply base rationalisation

  • Explore consortiums and buying groups

  • Simplify service delivery

  • Centralise where appropriate

Specification Optimisation

  • Can you improve your product range? 

  • Specification harmonisation and standardisation

  • Use of alternate lower cost materials

  • Value engineering

  • Joint product development

Contract and Compliance management

  • Are you paying the price negotiated in your contracts? Are you paying the best price possible? 

  • Adherence to procurement process regulations

  • Contract management process

  • Contract cash flow monitoring

  • Compliance audits

Right shoring Supplier relationship Rationalisation and consolidation Specification optimisation T otal cost management Demand management Contract and compliance management

Right Shoring

Are you operating in the right localities and countries to get the best combination of cost and efficiency?

  • Clear sourcing strategy

  • Category planning

  • Optimise the mix of local and offshore suppliers

  • Implement the correct pricing and contract models

Supplier Relationship

  • Are you overpaying for certain suppliers of pack sizes? Can you negotiate better terms by purchasing from fewer suppliers?

  •  Implement supplier relationship management techniques

  • Outcome and risk-based performance credits

  • Joint process improvement

  • Long term agreements

Demand management

  • Can you tailor capacity to meet variations in customer demand?

  • Volume forecasting and inventory management practices

  • Mandate spends policies

  • Govern the procurement process

Our Industry Experience

Telecommunication Provider

PwC was engaged by the client to classify transactions and identify opportunities to reduce the supplier base across the business, particularly for low spend ‘tail’ suppliers.
Our role included:

  • Classify all spend data into industy relevant taxonomy, leveraging our established data cleansing and validation tools and techniques, allocation methods and business rules.
  • Leveraged PwC’s Procurement Excellence framework and Procurement Lever to gain a further understanding of the drivers behind the ‘tail’ spend and identify opportunities to rationalise suppliers and reduce spend.
  • Engage with product owners across the business to assess and validate supplier rationalisation opportunities.
  • Leveraged PwC’s Procurement Advantage platform to provide an interactive tool for key stakeholders to explore categorised tail spend and identify further insights.
  • Developed a high level implementation plan to realise benefits, including prioritisation and sequencing of initiatives based on the respective benefit value and ease of implementation.

PwC analysed ~$750m in addressable ‘tail’ spend over a 12 months period involving 4,504 active suppliers and was able to identify savings opportunities to rationalise a minimum of 1,810 suppliers and deliver benefits between 7% - 12% of spend.

A renowned University for teaching and research

PwC was engaged by the client to conduct a Spend Analysis to identify and understand all cost saving opportunities and improve their overall strategic procurement efforts to support future financial sustainability.  

Our role included:

  • PwC’s Procurement Advantage platform rapidly analysed and quantified the client’s spend data and historical procurement by Product Categories
  • Establishment and consolidation of a standardised spend categorisation that aligned spend with established management structures and governance frameworks
  • Development of detailed category analysis and opportunity assessment to achieve savings across various Procurement Levers such as Total Cost Management, Supplier Management and Product Rationalisation.
  • Visualising the key insights and potential benefits to be validated with Procurement Teams.
  • Ongoing project management activities were run collaboratively with the client and included facilitating internal workshops, prompt timeline updates, status reporting, and the timely coordination of development and review of deliverables.

PwC was able to establish a multifaceted cost saving approach, tailored to the spend profile of each procurement spend category. An automated, operational dashboard delivers updated procurement spend analysis across spend categories.

Major Private Hospital Group

A major private hospital group was seeking to reduce its cost base whilst continuing to deliver a premium patient experience and attract leading clinicians. Procurement expenditure was ~ $1 billion across directs (prosthesis, medical equipment, medical consumables, clinical services) and indirects (e.g. facilities, utilities, ICT).

We adopted a six step approach to analyse the hospital groups spend, develop specific category strategies and develop a road map for implementation:

  • Data Enrichment - Collect & cleanse 3 years’ spend data across 40+ hospitals
  • Spend Classification - Categorise spend using PwC’s taxonomies and categorisation tools 
  • Opportunity Identification - Leveraging our Procurement Lever methodology and PwC’s Procurement Advantage tool, we systematically analysed each category across a range of Sourcing Levers to identify and quantify opportunities.
  • Sourcing strategy - we assessed their overarching strategy to sourcing and how best to leverage scale through their supply chain.
  • Deep Dive Analysis - Performed targeted in depth analysis on a number of sub categories to identify quick wins.
  • Recommendations - Produced a roadmap for identified savings and collaborated with key stakeholders to produce a high level project implementation plan

The Hospital Group was provided with category strategies for each major category group alongside a risk assessment and implementation plan. The Procurement diagnostic identified savings of between 5% - 8% realisable over a 3 year period. 

Procurement Optimisation for a Large Entertainment Services Company

The large entertainment company had highly complex procurement activity across several sites resulting in disparate purchasing decisions without a holistic view on product level spend. 

Approach
  • Purchasing power and product/supplier visibility were limited leading to a suboptimal procurement function. 
    PwC’s Procurement Advantage tool was leveraged to harmonise product level procurement data across sites while distilling savings opportunities into an interactive dashboard :
  • Purchase Order Data was consolidated and ingested to understand procurement at the most granular level.
  • Product Taxonomy was refined to obtain high level insights and map similar product spend
  • Spend Analysis and Savings Identification was completed once the data was prepped and taxonomy finalised. 
  • The Procurement Advantage Dashboard produced a wide range of visualizations and recommendations to optimise the procurement process.
Outcome
  • The optimisation uncovered various business  and operational benefits:
  • Product price variations across sites were targeted and used to identify potential purchasing powers and cost reductions.
  • Procurement visibility increased exponentially increasing negotiating power and potential savings.
  • Time-series trends for prices became visible.
  • Supplier rationalisation became possible.
  • Spend categorisation became accurate and comprehensive.

Follow PwC Australia

Required fields are marked with an asterisk(*)

By submitting your email address, you acknowledge that you have read the Privacy Statement and that you consent to our processing data in accordance with the Privacy Statement (including international transfers). If you change your mind at any time about wishing to receive the information from us, you can send us an email message using the Contact Us page.

Contact us

Oliver Sargent

Partner, PwC Australia

Tel: 612 8266 0461

Kevin Sandler

Partner, PwC Australia

Tel: +61 2 8266 5074

Ilandi Croucamp

Director, PwC Australia

Tel: +61 408 789 197

Hide