Value Republic is a consulting firm that helps clients optimize spending through three main approaches: 1) Optimizing volumes by implementing spend management practices like zero-based budgeting to control costs and volumes, 2) Optimizing prices through improved procurement practices and policies, and 3) Effectively reinvesting identified savings. They provide services like spend management, procurement training, and an e-sourcing tool. References are available upon request.

1. Value Republic
Where less is more

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. 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. 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. Ways to Close the Gap
1. Optimizing
Volumes
Positive
Impact on
EBITDA
3. Effectively
2. Optimize
reinvest
prices
savings

6. 1. Optimizing the volumes
100
Stop
Spending
Buy
% saving
Alternative
Buy Better
0 Change 100

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. 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. 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. 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. 3. Reinvestment of savings
Identified and validated
savings
Capturing savings
Integration in
Reinvestment
financial results

12. Value Republic
•Who We are
•How we can help you
•References

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. 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. 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. References
?
Your advice, your thoughts for a next step?
We happily bring you in contact with one of our clients on request