IBX Value Assessment Identifies the Potential of Purchasing

Per Svanberg, Senior Manager, IBX Consulting

Over the past few decades, few business functions have been subject to more change than purchasing. Corporations specialize and as they become more and more horizontal, more goods and services will need to be purchased from external sources. Add the globalization of international trade and you see a business function with an enormous potential for change; be it good or bad.

At IBX, we believe that most purchasing functions have a great potential to leverage the benefits that global productivity and innovation improvements have made possible. In order to show this potential, we have developed a value assessment methodology that identifies the potential and generates a pragmatic road map for action.

The IBX Value Assessment methodology focus on benchmarking your organisation with others based on the dimensions in the IBX purchasing framework (see illustration below).

The Value Assessment methodology consists of four main elements:

Spend Analysis
Organizational Assessment
Process and tool mapping
Transformation plan and RoI analysis

Spend analysis
The main purpose with a spend analysis is to identify:

What we are buying
From whom we are buying
For whom we are buying
And how we are buying

In this section the normal outcome is lists of categories/commodities with improvement potential in regards of spend and transactional management as well as saving opportunities.

Organizational assessments
Are you wondering if you have the correct organizational setup, the right strategies or the right people and roles within your organization, the IBX Organizational Assessment methodology will guide you through a couple of highly interactive workshops to build up a gap analysis to your wanted end state with a corrective action plan as a result.

Process and tool mapping
In the process and tool section we focus on identifying what processes you are performing and how well you are at doing it. We look at what tools you are using and how efficiently you are using them. We compare this to our industry specific benchmarks to give you a view of your organizational performance from a process and tool point of view with a suggested actionplan as a result.

Transformation plan and RoI analysis
In the steps already mentioned above, a number of improvement areas are typically identified. In the transformation plan and RoI analysis step, we try to quantify these areas and evaluate if it is worth wile investing time and money in improving them. A suggested roll out plan of identified initiatives is always a part of the delivery in this step.

The IBX Value Assessment methodology provides a comprehensive framework for analyzing the current state of the purchasing function. It defines the route forward and builds a business case for the transformation of the purchasing function.

If you want to learn more about the advantages and possibilities of the IBX Value Assessment Methodology, please contact your IBX key account manager or sales representative.

IBX Group AB

As a pioneer in the field of e-purchasing, IBX delivers measurable impact to client’s bottom lines through its comprehensive Efficient Purchasing framework. IBX serves blue chip corporations globally through proven purchasing expertise, with a high value supplier network and best of breed e-sourcing and e-procurement technology. The company enables its customers to generate sustainable cost savings through better spend visibility, increased spend under management and contract compliance. IBX offices are located in Stockholm (HQ), Antwerp, Copenhagen, Frankfurt, Helsinki, Milan, Oslo, Oxford and Paris.