by: Business Improvement Advisory – 18 January 2018
Organisations today are facing increasingly complex challenges and pressures in their day to day activities. When was the last time you paused to take stock and look at the bigger picture? Often business leaders are working in their business and not on it.
Business Improvement Advisory has identified what we believe to be the eight issues facing organisations today.
1. Risk Management
Risk has always been a key concern for businesses, with the primary focus being on the financial status, followed by health and safety, government rules and guidelines and commercial business practices. It’s no longer enough to assume your current risk management, health, safety and business practices are sufficient to manage your organisations risk.
Business Improvement Advisory can work with your business managers to review and identify your business risk, plan and implement both strategic and operational risk management processes to mitigate risks facing your business.
2. Are your costs being effectively managed?
Having undertaken a number of cost reviews for businesses, I have found that often between 8% and 13% of costs can be removed from businesses. If your costs for example are $30 million, that is effectively a saving of between $2.4 million to $3.9 million in direct costs that flow straight to the bottom line, improving both your businesses cash flow and profitability.
Business Improvement Advisory will work with your management team and staff to utilise existing knowledge to deliver these savings in real time. We do not just access the easy wins in savings, there are often considerable savings to be obtained from the tail of an organisations procurement spend and in direct costs.
Options available to fund this work can either be time and cost or on a risk and reward basis. Often this means no additional costs to your organisation to undertake a review and implement cost savings.
3. Does your organisation have effective Health and Safety systems and processes in place?
With recent changes to legislation and Health and Safety policies and practices this means organisations may be at risk from not having the right systems and processes in place to manage health, safety and quality standards across their business.
Business Improvement Advisory can work with your business managers to ensure you have the correct standards, systems and processes in place, from a strategic level to operational involvement, with the implementation of health and safety standardised templates. Business Improvement Advisory can also implement ongoing staff training and improve the focus on making health and safety part of the culture across your organisation.
4. What measures do you have in place to protect your company from reputational and brand damage?
It’s not difficult to recall allegations of child labour or modern-day slavery in the supply chain of certain retail brands in Australia and New Zealand or the product recalls over the past few years. The effect of this type of damage to your business reputation could cause a significant disruption to the brand and the public image of your organisation. It could directly impact on your sales, profitability, integrity / reputation of your business name and your brand.
Business Improvement Advisory can work with your management team to complete an ethical procurement and supply chain review to ensure your business is not transacting with any entity that does not meet your businesses minimum ethical standards. Business Improvement Advisory can implement processes and contracts that are best practice and fit for purpose. We will ensure suppliers meet your company’s accreditation criteria and make sure the quality systems, in place in your organisation, are industry best practice.
5. Is your procurement sustainable?
Organisations manage direct materials supply well; however, often indirect procurement is more complex. The level of auditing required to ensure that practices are sustainable, including those of first and second tier suppliers can be labour-intensive and time-consuming for businesses.
Business Improvement Advisory can work with your management team and procurement sourcing team to develop a written code of conduct for your business. Getting this right can be a key challenge to managing industry acceptance and practical application with your suppliers in the supply chain. Business Improvement Advisory can provide advice on the implementation of automation systems to future proof your organisation in an increasingly changing market.
6. Is your business a customer of choice for your suppliers?
A RFx / Tender process is often complex and does not always specify what your company really needs to provide in its response to successfully win the contract. Ensuring your business operates with a minimum of cost is important to be competitive. Supplier innovation is also important to your business if your business is to become a customer of choice.
Business Improvement Advisory has in-depth knowledge and experience in Sourcing, Supply Chain, Procurement and Contract Management. Working with you we can deliver supply chain optimisation, improved procurement processes and contract management. Business Improvement Advisory can also assist in delivering business innovation and a partnership approach with your suppliers and contractors to improve your tender success strike rate.
7. Does your business have a Centre of Excellence (CoE)?
The trend towards a centralised organisation to support the business and procurement functions is on the rise. The shift towards Industry 4.0 for manufacturing and automation of business systems is increasing in pace. The emphasis on delivering spend data, business analysis and reporting, plus RFx e-sourcing support, means creating a Centre of Excellence (CoE) within your business can be difficult for organisations.
Business Improvement Advisory can engage with your management and operational teams to ensure your business is supported. We can assist your business in the selection of appropriate software to future proof your business for the introduction of Industry 4.0. Ensuring your business has the capability to engage with automation to improve systems and processes going forward, this will be critical for your business to remain competitive.
8. How does your business manage your stakeholder engagement?
Does your business have an efficient stakeholder engagement process? Achieving effective communication and visibility of stakeholders is critical to measure and react to their changing needs.
This can be achieved through the implementation of a fit for purpose Customer Relationship Management (CRM) system. Issues facing organisations with the implementation of a CRM system range from poor selection, poor planning and ineffective use of the CRM tool.
Business Improvement Advisory has an in depth understanding of the implementation and use of a CRM system to develop organisational capability and improve stakeholder engagement and visibility. This can deliver cost savings to your business. By aligning procurement activity to the stakeholder’s business objectives, the overall result can be more valuable than cost savings alone.
Contact Business Improvement Advisory for a no obligation confidential discussion on how we can assist your business to reach its full potential.
Business Improvement Advisory
Kym Clayton: 0411 500 015
Bryan Schriiffer: 0450 457 196