Cost Optimization
PIR has over 20 years experience of running both complex and more straightforward cost optimization initiatives. The ability to take out cost is a central part of improving any margin. With experience of more than 1000 projects PIR has attacked a majority of spend categories and fine-tuned levers for each of these. Our methodology for cost optimization is not just an elevator pitch, you get practical solutions, feet on the ground, and both top- and bottom-line result.
You can’t make good decisions with bad data. The basis of all fact-based procurement work is a Spend analysis that answers the questions; who is buying? what do we buy? where and with whom are we buying? PIR will support your organization in turning the messy data into tangible opportunities with a proven spend analysis process.
We use our value lever tree to conduct a detailed analysis of each category to identify and verify savings potential. We use a proven workshop methodology where key stakeholders, category owners and PIR’s category experts gets together in a structured process to work through each category and challenge existing ways of working to generate cost savings initiatives. When this is done a savings initiative plan is created to realize identified savings.
PIR’s strategic sourcing process is constructed to establish supplier contracts that reduce cost, add value and mitigates risks. Our skilled consultants will work together with your organization to evaluate the potential in all supplier contracts.
We will work with your team to define the demand and provide our input to the market analysis to be able to choose a sourcing strategy using our proven category knowledge, benchmarks and well proven negotiation strategies. We will also provide continues transparent and follow-up of savings in scope and generated by using tools and a proven measuring method for following savings in five confidence levels from ide to bottom line effect.
Optimizing cost is not only done through lengthy RFP processes. PIR has over the years successfully re-negotiated mid-term contracts with improved pricing, better terms & conditions or a combination of both through its Speed Sourcing process. The impact is immediate giving the customer quick wins often within current fiscal year. Having perfected the Speed Sourcing process over the years and with PIR’s own legal team to support most contracts in scope are re-negotiated and updated after just one session with each vendor making it a valuable and efficient part of many cost optimization projects.
Cost Optimization Engagements
Opportunity Assessment of Working Capital
The client wanted to create transparency regarding working capital in the organization, and identify improvement areas and improvement initiatives.
Industry: Media & Entertainment,Private Equity
Insourcing, vendor managment, and SaaS procurement in HR transformation
The client, driving a large-scale HR transformation, required support with replacement of several business-critical applications (e.g., HR admin, WFM, Payroll), insourcing of outsourced HR services and establishment of an internal Shared Service Center (SSC).
PIR was brought in to advice the program management team on sourcing related enquiries, vendor- and contract management, and to support the client in managing the strong dependencies between contract and deliveries to ensure a successful transformation.
Industry: Travel & Transportation
Print & Merchandise Sourcing
The client wanted to consolidate volumes and assure more competitive terms in future agreements.
Industry: Telecommunications
Discover More Solutions
Sourcing Advisory
PIR supports clients in all stages of the sourcing lifecycle, from strategy, through design and sourcing, transition as well as reevaluation of existing positions and building own capabilities.