Organisations today are facing increasingly complex challenges and pressures in their day to day activities. Unfortunately, many business leaders do not pause to look at the bigger picture because they are working in their business and not on it.
Rowe Advisory has identified what we believe to be the six main issues facing organisations today.
1. Risk Management
Risk has always been a key concern for most organisations, with the primary focus being on the financial status, followed by health and safety and industry business practices. It’s no longer enough to continue to assume your current cost management, health, safety and industry business practices are sufficient to manage your organisations risk.
1.1 Are your costs being effectively managed?
Having undertaken a large number of cost reviews for businesses around Australia, Rowe Advisory has consistently found between 10% and 15% of costs can be removed. If your costs for example are $30 million that is effectively a saving of between $3.0 to $4.5 million in direct costs.
Rowe Advisory works with your teams and business to utilise existing knowledge to deliver these savings in real time. We do not just access the easy wins in savings, there are often considerable savings to be obtained from the tail of an organisations procurement spend and in the direct costs.
Options available to fund this work can either be time and cost or on a risk and reward basis, this means that often there are no additional costs to your organisation.
1.2 Does your organisation have effective Health and Safety systems and processes?
Recent changes to legislation and Health and Safety policies and practices mean organisations are at risk from not having the right systems and processes in place to manage health, safety and quality standards.
Rowe Advisory can work with your business managers to ensure you have the correct standards, systems and processes in place. We can implement a standardized process including templates, consistent staff training and an improved focus on making health and safety to make it part of the culture across your organisation.
2. Reputation and Brand Damage
It’s not difficult to recall allegations of child labour or modern slavery in the supply chains of certain retail brands or a product recalls over the past few years. The effect of this type of damage to your reputation could be a significant disruption to the brand and public image of your organization. It could result in a negative impact on the profitability and the integrity of the business.
Rowe Advisory can work with your management team to complete an ethical procurement and supply chain review to ensure your business is not transacting with any entity that does not meet your businesses ethical standards. We can ensure your organization has the processes and contracts that are best practice and fit for purpose. All suppliers meet the accreditation criteria and the quality systems used in your organisation are industry best practice.
3. Creating Sustainable Procurement
Is your procurement sustainable? Organisations manage direct materials supply well; however, indirect procurement is more complex. The level of auditing required to ensure that practices are sustainable, including those of first and second tier suppliers, is labour-intensive and time-consuming.
Rowe Advisory can work with your management team and sourcing teams to develop a written code of conduct and manage the key challenges with suppliers in the supply chain. This includes providing advice on the implementation of automation systems to future proof your organization.
4. Organisations becoming a customer of choice
The RFP process is often complex and does not always specify what is really needed. Supplier innovation is more likely if your business can become a customer of choice.
Rowe Advisory has in-depth knowledge and experience in Sourcing, Supply Chain, Procurement and Contract Management. Developing innovation is a two-way process, we can work with your teams to deliver supply chain optimization, improved procurement processes and contract terms that deliver innovation and a partnership approach with your suppliers and contractors.
5. Centres of Excellence
The trend towards a centralised organisation to support the business and procurement functions is on the rise. With the move towards Industry 4.0 for manufacturing and automation of business systems, the emphasis on delivering spend data, business analysis and reporting, plus RFx e-sourcing support, means creating a Centre of Excellence (CoE) can be difficult.
Rowe Advisory can engage with your management and operational teams to deliver a CoE, which ensures your business is supported. We can assist in the selection of appropriate software to future proof your business for the introduction of Industry 4.0 and the capability to engage with automation to improve systems and processes. This also including real time reporting, sourcing support and improved cost management.
6. Stakeholder Engagement
Most organisations need to achieve greater connections with stakeholders. Effectively implementing a Customer Relationship Management (CRM) tool in an organisation can be problematic.
Rowe Advisory understands the implementation and use of a CRM tool to develop organisational capability. We can deliver targeted training to teams and project manage the change process for your business. Our observation is that the alignment of the procurement activity and the sales and marketing activities to the stakeholder’s business objectives can often be more valuable than cost savings delivered with the introduction of the CRM tool alone.
Rowe Advisory has teams working in every state in Australia.
Make us your trusted business partner.
Call (07) 3201 1104, or email us today to discuss your requirements.
Chief Executive Officer, Jody Rowe, at jody@roweadvisory.com.au
Managing Consultant, Bryan Schriiffer, at bryan@roweadvisory.com.au