Is your supply chain/procurement at benchmark?

Ten questions to find the Gap.

Can you (or your delegate) answer most questions/statements with a strong 'yes'?

  1. Are we aware of the number of buyers and material planners we employ, including any "shadow buyers"? 

  2. Are we familiar with the benchmark numbers for procurement cost per headcount in relation to $ millions in our industry? 

  3. Do we have knowledge of the best-in-class annual cost reduction percentage in our industry? (Note: the average for the manufacturing industry is 3%, some industries achieve as high as 10%, and it is expected to become more challenging due to inflation in 2023) 

  4. Do we ensure that all external spending is managed by procurement, including legal, marketing, utilities, HR, and consulting, with exception reporting and consequences for non-compliance? 

  5. Do we incentivize our supply chain personnel based on gross margin improvement in addition to cost savings? 

  6. Do we require external or internal certification (such as a license to buy or license to plan) for individuals managing our most significant cost blocks or opportunities? 

  7. Do we have clear job profiles, competency profiles, competency assessments and training programs in place for our supply chain personnel? 

  8. Do we understand that economies of scale and speed can coexist? 

  9. Does our supply chain/procurement team include individuals with Six Sigma Black Belt and Lean Master certifications? 

  10. Bonus question: Do we have a RACI matrix in place to clearly define roles and responsibilities throughout our supply chain?


If you answered ‘yes’ to most questions, great!

You created a robust supply chain management team that keeps you competitive.

If you answered ‘no’ or are unsure about it, you most likely have an excellent opportunity to improve your margins and much more…

Feel free to get in contact for an exploratory dialogue with helmig advisory AG to assess the art of the possible.

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Roles & responsibilities - the division of labour

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