For most large corporations, third parties constitute 35-65% of the total operating costs. Today, most firms have internal procurement departments who have negotiated competitive rates for every category accessible to them. With the increase in volumes/variety/complexity of purchases, digitization, availability of new technology, scale of vendor agreements, globalization of business needs, convergence of categories, and regulatory risk management requirements, the next stage of opportunities for most lie in the following areas:
SLA Optimization – Legacy service level agreements too often result in poorly targeted spend and poor value. We perform custom analytics to match requirements the granular needs of the business resulting in significant savings.
Third party Vendor Risk Strategy and Compliance – We help our clients to come into compliance with third party risk regulations, design strategies to stay a step ahead of fraudsters, and to design incident response tactics. Kepler Cannon has experience with OCC, SEC, Fed, ECB and BuBa audit and compliance advisory.
Large Contract Negotiations – Billion dollar multi-year contracts are on the rise. We have reverse-engineered vendor economics, disaggregated end-to-end processes, creative solutions to scoping vendor vs. client responsibilties, complex spend and contract analytics etc to enable vendor agreements with sustainable savings.
Outsourcing/Sale-Leaseback to Vendors – Proprietary assets may or may not be competitive or provide a competitive advantage to your business. Kepler has a proven track record of uncovering, sizing, marketing and realizing such opportunities with minimal organizational disruption.
Mature Vendor Agreements – The days of T&M and fixed price vendor contracts are behind us. Such agreements don’t align the vendor interests with the clients. We have innovative partnership and sourcing structures to align the vendor incentives and economics with you.
Vendor Informed Sourcing – Suppliers can play an increasingly strategic part in today’s procurement function if firms develop formal processes to leverage their expertise. We work closely with key suppliers to capture their insight, while designing long-term operating models which facilitate this collaboration on an ongoing basis.
Sustainable Sourcing – Organization-wide sustainability and financial performance no longer exist at cross-purposes. We design processes that meet sustainability targets, while taking advantage of tax incentives and economic green sourcing efficiencies.
Maximizing VRM investment – Simple changes can yield outsized impact. Kepler re-engineers existing procurement processes in order to eliminate latent efficiencies, without the need for large scale organizational overhaul.
Customer-centric Orientation – Strategic sourcing has traditionally had a “spend category” paradigmatic orientation. In some cases it is better approached from an internal customer paradigm. We revamp procurement functions to understand spend at the individual level, while better aligning with the strategic goals of the business.