How To Choose The Best Strategic Sourcing Consulting Firms& Why you need strategic sourcing solutions
Strategic Sourcing Vs Traditional Purchasing
How to identify a strategic sourcing solutions that work with you to realise cost savings across spend categories, with deep market expertise, that can pull the right procurement negotiation levers, and build your capabilities so that you can sustain long term gains.
Choosing the wrong sourcing consultant can negatively impact supplier relationships as well as overall procurement strategy. In this article we highlight key areas to look at when considering strategic sourcing consulting services.
Benefits of Strategic Sourcing
The benefits of strategic sourcing services include cost savings, improved quality and efficiency, and increased flexibility in terms of suppliers used. In addition, by working with a limited number of suppliers, companies can build stronger relationships with those suppliers and get better deals, while leaving specialist areas to world class procurement organizations to help acheive significant savings.
Potential Drawbacks to Strategic Sourcing
However, there are also some potential drawbacks to using external procurement services. One is that it can be time-consuming and complex to set up and manage. In addition, if not done correctly, it can lead to supplier dependency and higher costs in the long run. Here we discuss the optimal setup when considering external procurement services and how it may be critical to your overall purchasing strategy.
Choosing Top Procurement Consulting FIRMS
If you’re considering strategic procurement consulting firms to help you better source products and services, it’s important to research first. Here are some tips for choosing the right procurement consulting firm:
Do your homework.
Research each firm thoroughly before making a decision. Read reviews, compare pricing options, and speak with previous clients to get a sense of their experience.
Choose a firm with a good reputation.
Ask if any of your friends in the industry can recommend someone to use or ask consultant about revious clients. Be sure the consultants at the firm have the relevant industry experience and expertise to help you succeed.
Find a firm with a narrow focus.
There are firms out there claiming to be experts in everyting, but are really masters of nothing. Find a consultant that has a narrow focus on a small area where they have been able to execute exceptionally well.
Don't be too picky about size or location.
Whats more important is the consultants ability to intrepret your suppliers language. To help you see through the overly complicated licensing/ selling guidelines designed to misguide you. A good consultant can simplify complex topics for you.
Small Team, Big Impact
Majority of Phycomex clients are recomended to us. Every client that uses our procurement strategies for one provider, often retains us for other providers. We focus solely on energy information and are proud to maintain a record of 100% success (for 5 years) with every client acheiving significant cost savings. Our conditional fee arrangement ensures we only win if our clients win first.
Supercharge Your Sourcing Strategies
Get in touch to supercharge your sourcing strategies for energy market data and pricing information so you can reduce costs with help from world class negotiators.
Energy Info Category Management
Industry and Category Expertise
Strategic sourcing is the process of working with suppliers to identify potential sources of supply and then developing long-term relationships with those suppliers to get the best value for your organisation. It can involve a variety of activities, such as needs assessment, supplier discovery, qualification, negotiation, contract management, and performance measurement.
One of the most important aspects of strategic sourcing is having deep expertise in the relevant industry and category. This allows you to find potential suppliers early on and assess their qualifications quickly and accurately. It also helps you negotiate better/ fairer renewals with existing suppliers.
Without an expert on your side, all your decisions are based on the information offered by the data provider. And naturally they will choose what to disclose and what to withhold and you will not be any wiser.
What if a data provider says, an increase of 15% of your current spend is the only renewal option available to you because of “insert any excuse here”, giving you no choice but to pay 15% more or cancel.
Phycomex helps its clients identify an alternatie renewal option and wins every time!
Energy and Commodity Information Procurement Experts
A good strategic sourcing procurement consultant can help you build this deep market expertise and develop a successful procurement transformation that offers you a competitive advantage. For instance, Phycomex is the only consultant of its kind purely focusing on energy market data and information procurement.
Energy Info Strategic Sourcing
Why you need a specialist on your side?
Prior to starting Phycomex, we have over 25 years of combined experience selling to 1,000’s of companies from the worlds leading energy/ commodity market data suppliers.
Since our launch in 2017 we have been using this deep market knowledge to provide valuable insights and guidance to some of the leading energy companies in the world. Our clients are armed with tools to helps them see through the tactics used by vendors.
Some tactics used by vendors to charge you more:
- We have a new pricing/ licensing model
- We have a new flexible package and your old set up no longer exists
- You have an exceptionlly high discount and it has to be slowly removed so we can make things fair with other customers.
- We dont have itemised costs so you have to take this new package with 7 things you dont want.
- And on and on and on…..
Get in touch to find out how your procurement team can secure a fair price from energy information providers.
Talk With An Expert
Unmatched, Comprehensive Procurement Consulting
When it comes to procurement services for energy information, no one does it better than Phycomex.
We have personally sold and licensed over $100 million worth of energy commodity data for the largest energy price reporting agency in the world. And have since bought over $60 million worth of the same commodity market data for our clients, including some of the worlds leading energy buyers, consumers, traders and financiers.
This unparalleled expertise gives Phycomex’ clients a distinct advantage in the category management of energy and commodity information.
Spend Categories and Bottom Line
Tools, Competiative Benchmarks and Best Practices
Strategic sourcing services apply an organized approach to the procurement function that draws on competiative market data, benchmarks against peers and utilises best practices to get the most value for an organisation.
All great procurement consulting firms can provide valuable market intelligence and help organizations establish competiative benchmarks in niche areas. The art is sourcing these specialist consultants for areas where your in house supplier management team may not have the expertise.
In addition, this external procurement team can advise on the best practices for specific product categories or industries. By leveraging the expertise of these sourcing consultants, using their business strategy to ensure compliance with supplier terms while negotiating contracts and optimising services to acheive cost savings, organisations can improve their procurement operations significantly.
Energy Info Strategic Sourcing
Why Consider External Procurement Services
Phycomex has a rich repository of tools, benchmarks and best practices to can help you understand and measure your setup (and spend) against peers and competitors with similar services. Organisations that implement our strategic sourcing successfully can acheive cost reduction of up to 20%.
We guide your procurement team through the entire renewal cycle and negotiate everything with you secure a reduction. We only charge upon success. With over $60M worth of procurement under management and having advised over $1.2B worth of acquisitions in this space you be rest assured the energy market trusts Phycomex as leaders.
Strategic Cost Reduction
Strategic cost management is important for businesses because it allows them to make better decisions about where to allocate their resources. By improving supplier performance, businesses can identify opportunities to save money on procurement and sourcing. Additionally, strategic cost management can help businesses optimize their supply chains and free up budget for other value add technology solutions. Ultimately, this leads to increased efficiency and profitability.
Companies are always looking for ways to gain a competiative edge. One way they do this is by spending a lot on market insights. In fact, majority of our clients largest procurement spend is on energy and commodity pricing market data.
They leverage the latest oil pricing market data to settle invoices, negotiate better deals and help management make critical decisions. Consulting services that specialize in this area can provide customers with the insights required to make informed decisions without compromising future costs or risk to enterprise license.
The market for pricing data is competitive, so consulting firms like Phycomex help its clients stay up to date on the latest pricing models/ license changes, thought leadership and intimate knowledge of suppliers selling practices.
With 5 years supporting some of the leading energy companies we have gathered a vast selection of customers across the energy supply chain. This offers clients the key components to make a fair and objective comparison of their investments, against competitors.
In today’s business environment, companies must be able to react quickly to changes in the market in order to remain competitive. One way to enable this flexibility is through procurement transformation.
Sourcing strategies involves assigning certain vendors to external consultants, to help mitigate risk of non compliance, threats of termination and or abuse of market dominance.
Phycomex work closely with your management teams and agrees a sourcing strategy to help acheive savings with vendors. We are seen as thought leaders within energy information and commodity market data sectors, with over $1.2 billion of private equity investment where Phycomex has played a key role advising investment decisions.
Our consulting services can help you develop a plan for purchasing essential products and services at the best price. We offer our clients a conditional fee arrangement where our services are of no cost if we fail to impact your bottom line.
By using our deep market knowledge and procurement expertise, companies can transform their procurement processes and acheive cost reduction never seen before. Contact us now to find out more about our procurement solutions and find out why Phycomex is regarded as one of the top consulting firms for energy information cost reduction.
Contact The Top Procurement Consulting Firm
for energy market data and pricing information.