The Opportunity Assessment typically identify savings of 8%-15% on addressable spend and Staverton has extensive experience in conducting these exercises across sectors including; manufacturing, retail, healthcare, food & beverage.
The Opportunity Assessment typically takes 6-8 weeks to complete and consists of 3 key stages: Developing the Current Profile, Benchmarking & Evaluation, and Final Report.
When developing the current profile, the initial focus is to perform a spend analysis. Using industry-standard taxonomy codes, vendors are assigned to categories & sub-categories, enabling Staverton to create a robust spend cube. Following the completion of the spend-analysis, Staverton facilitates workshops with supplier relationship owners and reviews key contracts. At this stage, the Core Procurement Framework is used to profile the current maturity of a client’s procurement operation.
The benchmarking and evaluation stage consists of two key elements, Opportunity Profiling, and Maturity Gap Analysis. During Opportunity Profiling, in order to identify potential savings opportunities, the outputs from Stage One are evaluated and, where possible, compared to benchmark data, while also considering implementation complexity. The second element focuses on procurement maturity, taking the current profile data from Stage One and comparing it against typical clients and industry best practices.
The final report includes both a savings opportunity pipeline and a procurement transformation roadmap. The savings opportunity pipeline is presented to the client, with savings ranges assigned to each initiative. Additionally, Staverton outlines the applicable sourcing levers for each project, as well as modelling when savings will impact the client’s P&L(profit & loss). The output from the Maturity Gap Analysis is used to formulate a roadmap of suggested transformation activity.
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