LoBue: Real Resources: Our Services: Purchasing

PURCHASING

LoBue's approach to optimizing the purchasing power of the client firm

THE NEED
Purchasing goods and services is both critical and time consuming. People in purchasing often battle between departmental requirements and budget constraints. Without knowledge or influence in either camp, the purchasing function is left to make the best decisions it can often with incomplete information.

As a result, less than optimal decisions are made with the best of intentions. The ramifications of these decisions both in terms of inappropriate purchases and expenses are felt by the firm long into the future and include:

Purchasing too much of a particular good or service
Purchasing to high quality of a particular good or service
Paying too much for a particular good or service

THE SOLUTION
LoBue works with our client from the identification of goods and services necessary to grow the business through to purchasing policies and processes including the following:

Needs Assessment including current purchasing categories and dollars spent
Vendor Consolidation including requirements, criteria and risk analysis
Policies and Procedure Development in light of requirements and criteria developed including primary vendor, quality standard and entitlement requirements
Metrics Development to ensure ongoing optimization of the purchasing function

THE RESULTS
A comprehensive disciplined and ongoing approach to optimizing purchasing power. This approach will help reduce the amount of time spent on acquiring goods and services. Purchasing policies are in place with compliance assured and the most efficient purchasing process designed and installed. Further metrics and reporting are in place to ensure the ongoing optimization of the purchasing function.

~Typical Performance Results~
Key Performance Indicators	Purchasing Productivity	Operating Costs
Typical Range of Results	30 - 50%	30 - 50%