Value Republic
Where less is more
content



          • Reality of today

          • Common opportunity gaps

          • 3 ways to close the gap

       ...
Reality of Today


                                            Ambition :
 Difficult Economic
       Climate              ...
Common Opportunity Gaps

                                                          Budgeting
                             ...
Ways to Close the Gap


                       1. Optimizing
                          Volumes




                       ...
1. Optimizing the volumes

100
                                         Stop
                                       Spendi...
1.1 SPEND MANAGEMENT


    Spend            =            Price            X         Volume


                             ...
1.2 BENEFIts of SPEND MANAGEMENT


                                         Shared
                                      r...
1.3 Press articles




“Having each expenditure or item        “An approach to corporate, annual plan,
justified as to nee...
2. OPTIMIzing prices

               • Change the perception of Purchasing
Purchasing     • Develop a cost awareness among...
3. Reinvestment of savings

                   Identified and validated
                            savings


            ...
Value Republic


     •Who We are
     •How we can help you
     •References
Who we are

                                         A service company
                                 - Advice on Buying...
Who is Value Republic

 • Spend Management                                        • Consultancy
 • Core working Capital   ...
2Source activity

                    In practice

                   Your spend = Our spend

                   Build Und...
References




                                                         ?
    Your advice, your thoughts for a next step?
...
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Value Republic Company Presentation 2010

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Value Republic Company Presentation 2010

  1. 1. Value Republic Where less is more
  2. 2. content • Reality of today • Common opportunity gaps • 3 ways to close the gap • Value Republic: • Who we are • How we can help you • References
  3. 3. Reality of Today Ambition : Difficult Economic Climate at least maintain EBITDA Increase Reduce Sales/Margins Expenses The quick wins Decreasing sales have already been due to the crisis captured Find new opportunities for optimization
  4. 4. Common Opportunity Gaps Budgeting - Taking historic budgets and volumes for granted - Lack of transparency and methodology - Lack of consistency between departments - No shared responsibility Organization Savings - Purchasing coverage (60%) by procurement department - Lack of consistent calculation methodology - Lack of resources and expertise (especially Indirect) - Uncontrolled reinvestment - Lack of compliance to procedures - Between 2-3% of the global spend - Misperception of Procurement internally Return on Investment - Lack of measurement - Insufficient supplier management (e.g. SLA’s, KPI’s) - No or little understanding of the value - Often > 1 year
  5. 5. Ways to Close the Gap 1. Optimizing Volumes Positive Impact on EBITDA 3. Effectively 2. Optimize reinvest prices savings
  6. 6. 1. Optimizing the volumes 100 Stop Spending Buy % saving Alternative Buy Better 0 Change 100
  7. 7. 1.1 SPEND MANAGEMENT Spend = Price X Volume Responsability of Budgeting policies purchasing and processes • Spend Management is a combination of controlling cost and volume  requires the entire organization to justify each € spent  controlling costs without controlling volume is only a partial solution, because it reflects only the effectiveness of Purchasing • Spend Management uses a methodology that provides the transparency necessary to actively manage the spend: Zero Based Budgeting (ZBB)
  8. 8. 1.2 BENEFIts of SPEND MANAGEMENT Shared responsibility Supports the Allows a thorough organization in understanding of monitoring expenditure processes and performance SPEND MANAGEMENT Convert non revenue generating Gives full money into transparency of revenue generating indirect costs money directly impacting the bottom line
  9. 9. 1.3 Press articles “Having each expenditure or item “An approach to corporate, annual plan, justified as to need or cost: Zero- budgeting in which all departmental annual based budgeting requires its budget requirements must be estimated and practitioners to justify every dollar justified from the ground up, rather than by they spend.” (Wall Street Journal) adding a percentage allowance to last year's approved budget or actual expenditure.” (Wideman Comparative Glossary of Project Management Terms)
  10. 10. 2. OPTIMIzing prices • Change the perception of Purchasing Purchasing • Develop a cost awareness among internal customers coverage • Address unexplored categories in Indirect (Marketing, Training, Insurance, ...) • Specific Procurement Procedures by category Policies and • Usage of professional tools to support procedures process • Monitoring of consumption • E-auction • E- catalogues E Tools • Automatisation of Procurement Procedures, including governance, social responsibility, ...
  11. 11. 3. Reinvestment of savings Identified and validated savings Capturing savings Integration in Reinvestment financial results
  12. 12. Value Republic •Who We are •How we can help you •References
  13. 13. Who we are A service company - Advice on Buying and Budgeting - Procurement Center - Training Academy A state - Led by the continuous search and A networking place creation of value - Quarterly Parliament Meetings - Composed of citizens with strong - Bi-Monthly Senate Sessions professional and ethical skills - Yearly State of the Union
  14. 14. Who is Value Republic • Spend Management • Consultancy • Core working Capital • Interim Management Management • Procurement training Budgeting Procurement 2Source E-Solutions • E-sourcing tool • Tale spend • E-sourcing Strategy • On top projects • Sourcing Event • Long term suppliers management and • Flexible manpower setup • Profit sharing • Training
  15. 15. 2Source activity In practice Your spend = Our spend Build Understanding of Requirements and Current situation: - Current Requirements - Existing contracts and agreements Negotiation on the base of: - Total cost of ownership - Service Level Agreements - Respect of business ethics Recommendation including: - Cost - Quality - Supply Base view Our Remuneration is on the base of Savings achieved!
  16. 16. References ? Your advice, your thoughts for a next step? We happily bring you in contact with one of our clients on request

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