Procurement & Supply Chain Benchmarking

At Fulcrium, we have been at the forefront of Procurement and Supply Chain Benchmarking for over 20 years.

It is no longer sufficient for the Procurement and Supply Chain function to be satisfied with simple cost savings.

Now, its practitioners must leverage the entire supply chain to reduce risk and deliver bottom line profits. They need to think long-term and strategically while identifying and implementing quick wins, and have real influence and power with all the stakeholders in the business.

In the Oil & Gas sector, in particular, our clients have recognised that to contend in a fast-changing and unprecedentedly competitive world they need extraordinary Procurement / Supply Chain specialists.

Specialists that are knowledgeable about the technological and logistical challenges posed by managing both conventional and unconventional resource portfolios, and that understand how to optimise supplier-operator relationships for competitive advantage.

Dr Dominic Emery, Chief of Staff, BP

BP Vice President – Group Strategy, Dr Dominic Emery talks to Fulcrium about benchmarking-driven performance improvements in:

Mega-Projects
“Through the Cycle” Investment
Supply Chain

Ann-Christin Andersen - Director, TechnipFMC

Ann-Christin Andersen – Director, TechnipFMC talks to Fulcrium about how collaboration between operators and service companies can achieve 30% supply chain savings.

Covers Pricing, Standardisation, Technology Innovation and Operating Model adjustments in response to an ultra-low oil price environment.

At Fulcrium, we have extensive global experience of supporting the Procurement and Supply Chain function. Whether in fully mature geographies or in those still reaching maturity, we ensure that cultural, legislative, contractual and financial matters align to guarantee reliable sources of supply.

Our benchmarking services ensure that value excellence is obtained from every supplier appointment – from single time-limited engagements to preferred supplier relationships.

Our involvement and actionable insights have helped numerous companies to restructure and up skill their Procurement functions to:

Become fully aligned with the strategic goals of the business.
Identify where value truly lies and how it can be exploited by the business.
Turn disparate suppliers into a functioning network of business partners.
Leverage internal relationships more effectively.
Improve the identification and uptake of innovations generated in the supply chain.

Better communicate their value to the organisational stakeholders.
Reduce risks of supply chain fragmentation.
Identify high-value new partners, including from unexpected geographies.
Practice improved category management.
Improve supply chain sustainability.
Assess the value of procurement outsourcing.

One thing is certain: the world will only become more complex, and more risky. Managing that volatility will ask even more from the Procurement & Supply Chain function.

If you want to ensure that your Procurement & Supply Chain function is managing risk and delivering maximum bottom line benefit then contact us today.

Supermajor transforms service company relationships

This global supermajor used Fulcrium’s benchmarking services to provide unprecedented insights into service companies.

Fulcrium gives an independent view of each service firm, using a very wide range of sources, making them from our point of view a highly valuable secret intelligence resource.
They also understand - from having worked in them - how service companies and technology firms operate in terms of structuring and extending engagements, setting fee levels and building strong relationships, so another benefit to us is the fact they are effectively “poachers turned gamekeepers”.
That is, they now act as buyers’ advocates - helping us to get the very best out of our service company suppliers.

The client described Fulcrium as delivering ...

Highly credible benchmarking data in precisely the format we required – granular, by service line, grade, and geography.

This has enabled us to re-establish our preferred supplier list and we now have a far more sophisticated understanding of how to leverage benchmark data in negotiations.

This will enable us to deliver enhanced value throughout the organisation as part of our drive to reduce our cost to income ratio.

Leveraging benchmark data in negotiations

One of the UK’s largest banks used Fulcrium to provide credible data on professional services firms.

Supermajor reduces legal expenditure by $183 million

This global supermajor used Fulcrium to put its relationships with external counsel on a sound commercial basis and prevent their market arrangements with them becoming grossly sub-optimal.

The initiative reduced the company’s legal services expenditure by $183 million over a three year period, representing 10% saving annually (as validated by the Supermajor’s financial controllers). Less tangible savings included the fact that the in-house legal team had achieved a reinvigorated relationship with its external counsel and felt a greater sense of control.

I believe that, as a result of Fulcrium’s involvement, we are five or six years ahead of the other Supermajors in terms of our procurement strategy and implementation for Legal Services and I am very proud that we are in that position.

Our Methodology.

Backed with over 20 years’ experience, we know how to provide accurate data.

Outstanding techniques that drive best performance. Outputs from this stage are parameters for a granular benchmarking framework.

Baselining

Utilising our unique, proprietary and global benchmarking database, we ensure the critical mass of accurate data for comparison.

Benchmarking

Accurate value identification, quantification and prioritisation of improvement options that would not otherwise have been considered.

Value Analytics

Value excellence to define scope, goals and the top-quartile initiatives needed to close performance gaps to drive exceptional value realisation.

Terms of Reference

Verification of benchmark methodology, data, analytics, accuracy of value-identification, and business case before initiatives are sanctioned.

Validation & Assurance

Customised execution to take action on the values, practices and procedures that will drive exceptional value realisation.

Follow Through

Procurement & Supply Chain Benchmarking

At Fulcrium, we have been at the forefront of Procurement and Supply Chain Benchmarking for over 20 years.

It is no longer sufficient for the Procurement and Supply Chain function to be satisfied with simple cost savings.

Now, its practitioners must leverage the entire supply chain to reduce risk and deliver bottom line profits. They need to think long-term and strategically while identifying and implementing quick wins, and have real influence and power with all the stakeholders in the business.

In the Oil & Gas sector, in particular, our clients have recognised that to contend in a fast-changing and unprecedentedly competitive world they need extraordinary Procurement / Supply Chain specialists.

Dr Dominic Emery, Chief of Staff, BP

Ann-Christin Andersen - Director, TechnipFMC

At Fulcrium, we have extensive global experience of supporting the Procurement and Supply Chain function. Whether in fully mature geographies or in those still reaching maturity, we ensure that cultural, legislative, contractual and financial matters align to guarantee reliable sources of supply.

Our involvement and actionable insights have helped numerous companies to restructure and up skill their Procurement functions to:

One thing is certain: the world will only become more complex, and more risky. Managing that volatility will ask even more from the Procurement & Supply Chain function.

If you want to ensure that your Procurement & Supply Chain function is managing risk and delivering maximum bottom line benefit then contact us today.

Supermajor transforms service company relationships

Leveraging benchmark data in negotiations

Supermajor reduces legal expenditure by $183 million

Our Methodology.

Backed with over 20 years’ experience, we know how to provide accurate data.

Baselining

Benchmarking

Value Analytics

Terms of Reference

Validation & Assurance

Follow Through

Help

Benchmarking

Contact