We differentiate ourselves by leading our clients through the transformation journey, and in order to help them deliver financial value during the transformation, we typically execute a parallel track of sourcing savings initiatives.
Our methodology transforms the key aspects of the procurement function across people, process and technology. We start the transformation journey by focusing on building a deep view of the client’s data and current-state of the organization. To do this, we engage our Consulting team to conduct spend data analysis and a procurement proficiency assessment that produces a gap analysis and specific opportunities for improvement with a detailed transformation roadmap.
From there, our consulting and technology experts begin to execute the plan for transformation. Each plan is custom-fit for each client which often includes: operational re-design, technology implementation, business processes improvement, strategic sourcing, change management and training delivery. In order to assist clients with sustaining the transformation, Velocity Procurement’s Services team provides flexible out-tasking solutions for technical and operational support.
Procurement organizations of all sizes, complexities, and maturity levels are seeking to take the procurement function to a higher level. By engaging in Procurement Transformation, with Velocity Procurement, clients are achieving:
- Restructured Procurement operations enabling maximum strategic value
- Renewed executive and stakeholder buy-in to the procurement function
- Increased competitive advantage that enables long-term growth
- Increased sourcing savings and spend under management
- Visibility and control of Procurement performance metrics
- Improved supplier relationships and innovations
- Reduced supply chain risk
a Mid-Market Solution
The VELOCITYSPARK program gives mid-sized companies the opportunity to leverage best-practices to improve procurement capability and value. VELOCITYSPARK makes it easy for companies to efficiently and expeditiously assess their existing procurement capability, determine their level of maturity and identify areas for improvement, all within a modest budget.
4 Phase Transformation Methodology
Velocity utilizes leading proprietary technology solutions combined with a proven 8-step spend analysis methodology to complete the end-to-end spend visibility program. This methodology has been customized to suit the specific issues of Procurement organizations.
1. Evaluate Annual Spend Data
2. Conduct Stakeholder Interviews
3. Formalize Spend Categorization (e.g. Taxonomy)
4. Evaluate Spend Categories for Sourcing / Contracts
5. Develop Sourcing Opportunities for Cost Savings
The final deliverable of the opportunity assessment is a report detailing the spend management opportunities that could be realized in each spend category and a recommendation to client team on which spend categories should be strategically sourced, how and when.
Provides a clear picture of a Clients' supplier spend and creates a solid baseline for capability analysis, direction setting for procurement transformation and identifies cost savings opportunities.
Develop a formal understanding of the Client's existing Procurement function by collaborating with our Client's key business process owners for each of the 9-Dynamics to define where they are today, where they want to be tomorrow, and the actions that will bridge that gap.
1. Publish and Facilitate an Internal Customer Survey
2. Conduct Interviews with Key Stakeholders
3. Assess Functional Capabilities of In-Use Technology
4. Benchmark Existing Procurement Function vs. the Benchmarks
The 9-Dynamics of Procurement Capability approach delivers a detailed gap analysis, recommendations for change, priorities, roadmap and business case to enable sustainable Procurement Transformation.
The assessment across the 9-Dynamics is the foundation to the procurement transformation detailing the changes that will move the Client from today to tomorrow.
As a result of the assessment activities, there are defined opportunities for improvement that will enable the success of the procurement transformation. These opportunities typically range from changes to operational structure and organization to enhancements to policy, process and procedure. Often there is a mix of these improvements that will be contributors to other initiatives.
1. Develop a Project Charter for each Change Initiative
2. Perform the Independent Project Efforts According to the Charter(s)
3. Develop the Implementation and Change Management Plan(s)
Specific deliverables will vary based on which change initiatives were selected by the Client Team. In all cases, the business case will be used to support the investments for each change initiative as a part of the overall Procurement Transformation.
These efforts will begin to define what and how the Client will begin to affect change and move into formal transformation.
Lead and manage the implementation of the change initiatives. Velocity supports the Client with enabling these changes in order to elevate the procurement program as it embarks on the transformation journey.
1. Form a Procurement Transformation Steering Commitee
2. Facilitate each Implementation Project Team
3. Measure Effectiveness of the Procurement Transformation Program
This phase will deliver tangible results beyond project deliverables. For each change initiative that is implemented, a business case and it's correlating performance metrics will be tracked by the business lead and reported to the Steering Committee on a regular basis.
At this stage, the Client will be able to deliver the change to the enterprise and track the performance - realizing new value.
“Knowing is not enough; we must apply. Willing is not enough; we must do.” ― Johann wolfgang von Goethe