Category management

A cross-organisational, systematic approach that is based on an analysis of facts, ensures the company the lowest total costs, and the largest competitive advantage – both in the short and long term

Category Management is a strategic mindset, where teams work together towards common strategic goals with unique priorities and interactions that are harmonised between departments and the supplier market.

One shouldn’t underestimate the effect of working methodically with Sourcing & Procurement!

The results:

  • Clear managerial direction created through fact-based transparency
  • An effective procurement set-up supported by a professional toolbox
  • Optimising the value of the company by utilising the entire supply chain in the long term, and harvesting short-term savings at the same time
  • Total screening of organisational competencies
  • Shift the focus from operational purchases to a strategic focus on total costs
  • Implementation of tender processes

Procurement departments are often very busy, and have to be tough when prioritising where to put their efforts, but the questions remain: are resources being used efficiently? Is the strategic direction being sufficiently supported through an analysis of the analysis of fundamental data, and are the right stakeholders involved in forging the best results?

4IMPROVE is convinced that a cross-organisational, systematic approach that is based on an analysis of facts, is the right method to ensure the lowest possible total costs – both in the short and long term.

Category Management is a strategic MINDSET that is based on teams working together towards the same strategic goals, with unique priorities and interactions attuned across departments, such as R&D, Quality and Procurement.

4IMPROVE supports the organisation’s focus on:

  • Creating long-term value in supplier relations, and establishing solid cooperation regarding new services and innovation
  • Reducing risks, ensuring optimal quality levels, and delivering top performance
  • Establishing technology road maps that safeguard the company’s competitive advantage in both the short and long term

BI & performance management

Transparency  supports the achievement of set targets continuously and effectively

Procurement data is translated into knowledge and insight in an intuitive, easily-understood standard solution. Power BI solutions create the largest, most sustained value for the company, when we establish a standard solution that the company can develop further itself.

Our experienced BI consultants are able to assist the organisation in:

  • Defining KPIs
  • Visibility of progress
  • The implementation of standard solutions
  • Securing the solution in place

The results:

  • Digital transparency and visual overview of established KPIs within e.g.: turnover, savings, categories and portfolio management etc.
  • Ownership of the solutions that have been developed and full documentation provided
  • A well-documented ”Centre of Excellence” solution, based on standard tools
  • Involving the organisation in establishing measuring points
  • Continuous evaluation of internal and external performance
  • Release of resources from the validation of collected data
  • Well-documented foundation for reaching executive decisions

Most companies are in possession of large amounts of data, but is the company able to convert this data into knowledge?

At 4IMPROVE, we have extensive experience of translating the company’s actual performance into easily-understood measurement points from a solid, data-driven decision-making foundation.

Power BI solutions create the greatest sustainable value for the company when we establish a standard solution that the company is able to develop further itself.

A structured process maps out the amount of available data, and our experienced BI consultants involve the organisation in:

  • Establishing the strategic, tactical and operational Key Performance Indicators that support the company’s objectives
  • Transparency in status and progress
  • Implementation of a standard solution that visually meets the needs of company stakeholders
  • Securing unity in the organisation through training and involvement.

Case | HMF Group | Assessment and training courses raise competences and provide procurement savings
Case | Kamstrup | Price focus leads to major savings and organisational development
Case | Borg Automotive | Transport optimisation and digitalisation allows annual savings in the region of millions of kroner 

Procurement excellence

Focus on cross-functional procurement competences and organisational insight

Hands-on training programme based on Action Learning concept. The programme is based on the company’s specific needs, with a focus on cross-organisational training in:

  • Category Management
  • Forhandling
  • Negotiation
  • Supplier Management

Competence development that improves the company’s top and bottom lines.

The results:

  • Fine tuning and perspectivation on the team’s understanding and values regarding cross-functional cooperation
  • Undertake analyses with the purpose of establishing fact-based strategies and decision-making
  • Introduction to a comprehensive, methodical toolbox
  • Undertake cross-functional supplier selection procedure
  • Implement ongoing improvements
  • Establish the foundation for new teamwork and dynamics
  • Create added value through the development of professional competences

The training is based on the company’s specific needs, so is tailored to the company’s strategy, and the organisational competence gaps that have been identified.

At 4IMPROVE, we believe in the effect of Action Learning!

Action Learning is a dialogue-based training method and teaching form. It starts with a step-by-step cycle, where the training method actively engages participants in reflecting upon and applying theory, knowledge and concepts to concrete experiences to achieve the best possible competence upgrade.

The training concept realises that procurement expertise demands different competences, depending on whether one is working with Category Management, Negotiation or Supplier Management. In addition to these functional competences, the organisation’s ability to visualise new perspectives in organisational cooperation is also developed – equally across the organisation, and the supply chain.

Case | HMF Group | Assessment and training courses raise competences and provide procurement savings

Strategy and Transformation

Continuous transformation of procurement functions

A strategy is of little worth if it cannot be delivered. In many cases, the organisation uses more resources on designing strategies than executing them. The strategies turn out to be empty statements, and the transformation processes are halted. 4IMPROVE can document the connection between creating results, and the ability to develop and execute holistic procurement strategies.

Results:

  • A clear direction, a successful transformation, and an assured execution
  • The Procurement Strategy supports the company’s overall strategy
  • Identification of customer needs, which must be converted into supplier demands
  • Determining what the future criteria for the supplier portfolio should be
  • Identification of the competences that must be maintained and developed to match the procurement strategy
  • Development, improvement and installation of processes in a guaranteed execution
  • Strategy for procurement collaboration with the rest of the organisation to ensure results

Results cannot be planned…achievements can! (Lars H. Nielsen, Vinderkultur, 2011)

A strong procurement strategy has been incorporated into the procurement function, aligned with the company’s overall strategy, and not least of all, aligned with activities in the company’s other operating areas.

A strong procurement strategy has been incorporated into the procurement function, aligned with the company’s overall strategy, and not least of all, aligned with activities in the company’s other operating areas.

Is the company experiencing growth? Is it haemorrhaging? Is it about to have a merger, or does it have a stable turnover? 4IMPROVE ensures the necessary transformation.

4IMPROVE coaches the organisation in determining their strategy, how to prioritise target areas and results within their procurement organisation, and how to challenge the processes and methods which need to be developed and implemented. Strategic goals are broken down into a series of ambitious and concrete objectives that should be incorporated into ongoing management reporting. A survey undertaken by 4IMPROVE amongst more than 100 industrial, Danish companies, reveals a clear correlation between the individual company’s growth and ability to create good results , and their ability to develop and execute a holistic procurement strategy.

Case | HMF Group | Assessment and training courses raise competences and provide procurement savings
Case | Fertin Pharma | Strategic procurement processes ensures product launches and increased competitiveness

Project procurement

Managing complex contracts, proactive risk mitigation and balance cash flows

Efficient project procurement requires early planning, clear roles & responsibilities, pro-active risk mitigation, and structured management of variation orders. 4IMPROVE supports utilizing the full tender potential through best practice processes.

4IMPROVE supports utilizing the full tender potential through best practice processes.

Increase your project’s profitability with integrated procurement processes

The results:

  • Effective project support from the sales phase through to the final stage
  • Implementation of professional tendering processes
  • Proactive risk reduction
  • Capitalising on the full tender potential
  • Balanced cash flow in accordance with milestones set by the customer contract
  • Optimal “back-to-back” contract cover
  • Timely delivery through close supplier relations

Project procurement is a multi-dimensional discipline, with a wide range of internal and external stakeholders. It involves dealing with complex supplier contracts, reducing external risks proactively, and balancing cash flows. These are all examples of the necessary activities to achieve effective project support, thus ensuring the success of a project.

Achieve a steep learning curve through effective cross-organisational cooperation!

4IMPROVE supports companies’ implementation of effective procurement processes that are planned across the organisation, and which follow the course of the project. We can assist in developing professional tendering  material, train employees in how to achieve the best possible “back to back” contract coverage, as well as understanding the importance of detailed contract management throughout the entire project.

Case | Fertin Pharma | Strategic procurement processes ensures product launches and increased competitiveness

Procurement Assessment

Comprehensive fact-based assessment of sourcing and procurement potentials

Sourcing and procurement has a significant impact on the financial performance of the company. The procurement assessment is a fact-based evaluation of inherent and future potentials related to cost or capital reductions, value creation, process efficiency and resource utilization.

The results:

A comprehensive game plan with concrete, value-creating action areas:

  • Design and execution of procurement and category strategies
  • Initiatives that support cost reductions and added value
  • Clear criteria for the composition of the supplier’s portfolio
  • Competent and decisive cross-organisational teams
  • Supporting competence-development plans
  • Implementation of decision-supporting BI solutions

A course in Procurement Assessment is a systematic and thorough evaluation of the company’s overall potential to achieve:

  • A clear and strategic direction for all the company’s procurement
  • Cost-reductions via an assessment of previously purchased products and services
  • A value-creating collection of supplier portfolios
  • Increase in value by challenging product specifications, and applied production technology
  • Improved cross-organisational cooperation, included timely involvement of internal and external stakeholders
  • Repeated use of decision-supporting BI solutions
  • An effective and competent procurement organisation that is motivated by a need to create lasting improvements

4IMPROVE implements potential coverage based on a holistic view and with in-depth involvement of internal stakeholders

We question what is being procured, the technology involved, and the current choice of suppliers. The course is undertaken in close cooperation with the organisation, uncovering concrete and fact-based areas of action, which in turn are prioritised and collated into a specific game plan.

A revelation of potential is an unbiased assessment of the unrealised or overlooked potential of the company.

Case | Fertin Pharma | Strategic procurement processes ensures product launches and increased competitiveness
Case | Kamstrup | Price focus leads to major savings and organisational development
Case | Borg Automotive | Transport optimisation and digitalisation allows annual savings in the region of millions of kroner 

Meet our specialists

Sourcing & Procurement

Jens Arvad Johansen
Senior Management Consultant
+45 40 42 45 50
jaj@4improve.dk

Ernst Kildegaard
Senior Management Consultant
+45 40 42 48 40
ek@4improve.dk

Inge Dall
Senior Management Consultant
+45 52 15 94 07
ida@4improve.dk

Morten Munkgaard Møller
Associate Partner
+45 53 38 33 10
mmm@4improve.dk

KS Khoo
General Manager 4IMPROVE Asia
+6-012-4035 029
ks@4improve.dk

Jørgen Vejvad
Partner
+45 20 64 88 89
jv@4improve.dk

Bo Dencker
Managing Partner
+45 40 75 39 99
bd@4improve.dk

Lars Thorgaard Henriksen
Senior Management Consultant
+45 22 78 06 61
lth@4improve.dk

Anne Christine Tæstensen
Senior Management Consultant
+45 91 55 68 40
act@4improve.dk

Svend Aage Hansen
Independent Contractor
+45 23 21 36 32
sah@4improve.dk

Torben Hjort
Independent Contractor
+45 51 26 91 26
th@4improve.dk

Søren Ohm
Independent Contractor
+45 28 12 60 00
soh@4improve.dk

Andreas Slavensky
Independent Contractor
+45 53 60 31 71
asl@4improve.dk

Martin Chröis
Independent Contractor
+45 61 79 37 93
mch@4improve.dk