Our Approach
Our Philosophy
Our approach is to do a thorough review of as much of the acquisition process as possible. Starting with the current process, if there is one documented. The focus is to determine a few things:
Where are we now?
We need to establish a “ground zero” for where the company currently stands regarding policies and procedures, a requisition-to-pay process, and checks and balances. None of what is mentioned may have been established, or a set of policies may have been written but not followed. Either way, a starting point must be established to move forward. The more information in terms of numbers and statistics that can be provided…the better! The purpose here is NOT to assign blame but to determine an accurate starting point.
EX: We are currently issuing 100 purchase orders per month with negligible savings.
Where are we going?
Once the current state is established honestly and truthfully, the next step is to determine what end state the company wants to achieve. A lot will depend on the results of the first question, as well as a realistic expectation of what can be achieved. Also, the philosophy of the approach to be employed will need to be crafted to establish a series of goals.
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EX: The goal is to do more with less. Let’s try to be more efficient and reduce the PO count to 75 per month as a department.
How are we going to get there?
This is the crux of the project! Here, the methodology by which we are to accomplish our goals is outlined in the previous question, along with the time frame for achieving them.
EX: We will reach our goal of 75 within 6 months, achieved through training and creative ways to combine orders.
In addition, there are certain things that we will be looking at specifically to accomplish these tasks:
Creation of policies that address the Purchasing Process, Strategic Sourcing Process, and all else that connects everything to Supply Chain Management.
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Purchase Order Policy
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Is there a written Requisition to Pay policy and process accessible to all procurement personnel?
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Other Policies and Procedures
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What is missing or not addressed?
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Contracts
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Do we have any? With whom and whose contract form is it on?
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Who negotiated it?
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Is it current or not expired?
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Approved Vendor List (AVL)
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How does a supplier get on this list?
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How many are on here?
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How often is it reviewed?
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Strategic Suppliers​
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Determine if there are any suppliers that can drastically affect your business... or even put you out of business!
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Payment Terms
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​Do you pay your bills on time as agreed?
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Spend
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What is the total spend by year, by quarter, and by month?
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What is the spend outside of procurement?
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Ethics and Values
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Are these important to the company? If so, are they reflected somewhere?
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​To whom does procurement report?
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This determines its marching orders and subsequent approach.
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These are just some of the questions that will be asked to complete a comprehensive picture of
the company’s procurement department.
Testimonial
David McAllister - Strategic Finance Leader with Halkey-Roberts Corporation
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Bob and I worked together at Wonderful Citrus. Bob was the Director of Procurement, and I led the finance functions. We had a great collaborative relationship, and Bob was very much aligned with the organization's financial objectives. He has great ideas for driving costs out and finding other ways to drive profitability in the business. He is an excellent collaborator and works well cross-functionally. He'd be a great addition to any team, but would be especially valuable to organizations that value collaboration.
PCS, LLC Mission Statement
To comprehensively review a company's procurement department's current services, goals, and targets to determine if they meet the company's vision and expectations of metrics, cost savings, and value generation. Once complete, execute a plan to get the department up to those standards.
What We Will Not Do
PCS will investigate your procurement operations and provide recommendations on fixing the problems encountered in the Discovery Evaluation. We will NOT deal unethically with suppliers or anyone else, nor will we intend to defraud anyone. If this is what you are looking for, then please look elsewhere. We will negotiate (and teach the team how to do so) very hard, but we will not lie, cheat, or steal. You have my personal guarantee on that! All discussions with suppliers will be above board, legal, and ethical. This is why a contract must be negotiated with as many suppliers as possible, prioritizing the total spend and criticality of the supplier. All the terms and conditions must be adhered to until the end of the contract. Any changes must be mutually agreed upon and memorialized. Ethics and values are fundamental to me and must not be compromised. In turn, I will point out when suppliers attempt to make unscrupulous offers to procurement personnel and how to combat them. Your career and reputation are not worth any potential short-term gain! I would highly encourage that this "Code of Ethics" be agreed upon by the team and senior management and incorporated in any guidelines or Supplier Handbook that is created and included in any RFP to suppliers wishing to do business with the company.