Welcome to The Procurement Group
A procurement management firm for UK businesses since 2003.
Dependable & reliable costs management for your business.
For over 20 years we’ve been the premier one stop shop for support & advice on all aspects of managing UK business costs using the very best procurement management & cost reduction techniques.
This is business costs Cost Reduction done like you’d do it yourself.
Procurement Management
As the top procurement management provider in London, we understand the importance of offering our clients a full suite of services when it comes to managing your indirect business costs as part of your very own, bespoke & unique to you, Cost Reduction programme.
Starting with a thorough understanding & analysis of all your current business costs arrangements, progressing to tendering, contract negotiation, implementation, supplier management and bill validation – our procurement management process will undertake the most detailed & comprehensive analysis of your current arrangements available, providing the basis for a sound Cost Reduction partnership and freeing up you and your teams time to focus on your key business drivers.
Get in touch today to find out how our procurement management process can help you and your team deliver your individually tailored Cost Reduction programme
Cost Reduction & Spend Optimisation
Our goal is to ensure that you get the best “bang for your buck” by utilising the very best procurement management technicques to deliver a Cost Reduction programme for your business costs.
By leveraging our extensive supplier relationships combined with thorough analysis of your current contractual arrangements and ideal operational “wish list” we will ensure that your business costs Cost Reduction project is a success – delivering the very best value for money to your business now, and going forward.
Sustainable, long term, delivered Cost Reduction of your business costs.
Supplier Management
In contract supplier management is an often overlooked part of procurement management & Cost Reduction programmes for business costs in particular.
By viewing all of our relationships as partnerships we ensure that your supply partners are treated fairly and perform to the SLAs that your operations team require. Throughout the term of our engagement.
Let us use best practice procurement management techniques to manage your business costs suppliers as part of your business costs Cost Reduction programme so that you and your team can focus on the big issues in your business.
What do our clients say?
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- 100% confirmed we deliver value for money,
- 85% rate our value proposition as excellent or very good
- 95% would happily recommend us to other Finance Directors
Book your free 17 minute consultation today
Speak to our procurement experts to find out if we’re the right procurement management partner to deliver your business costs Cost Reduction programme. Tell us your objectives and after 17 minutes we’ll give an honest, no holds barred answer about whether it’s worth having a more detailed 45 minute follow up.
Click below to arrange a convenient time.
Our Testimonials
Procurement Management Blog
Gas price surge Wednesday
News came overnight Tuesday of a strike in Australia which spiked the European gas market yesterday – https://www.afr.com/work-and-careers/workplace/lng-exports-at-risk-as-woodside-and-chevron-strikes-loom-20230809-p5dv3n. You will see other articles if you Google.
Last year the same strike was not settled until late September.
The reason this affects Europe is that China takes 85%+ of Australian production and without that supply China will outbid Europe for LNG supplies from Qatar which is 40% of European supply.
You have time to wait if you wish to see if the market drops back if your renewal is imminent. The risk is that the strike is not settled and prices rise further in the meantime.
Below are a couple of screen shots from yesterday afternoon
If you wish to talk it through do please call me.
Thank you
URGENT: The EBDS Application Deadline – 2 days left to apply
The EBDS Application Deadline – 2 days left to apply – does it apply to my business?
The Energy Bills Discount Scheme primarily relates to what are referred to as Energy Intensive industries – stuff like glass making, plastics etc. where they use huge amounts of energy. If you are categorised under one of the sectors detailed here, you are eligible to apply. You just need to check your SIC code (as recorded at Companies House) against the list
It also relates if you have insatlled a Heat Network in to any of your properties. You’ll know if you have a Heat Network as it will have been a significant investment & will require ongoing monitoring & maintenance.
If you require any help fill out the Contact Form or call 0800 0 193 244 https://procurementgroup.co.uk/contact/
Too many transactions on your purchase ledger
One of the problems that a lot of people experience is that over time their supplier base gets very flabby. By flabby, what I mean is that you’ve got too many suppliers. Within that there are too many transactions, not just caused by the number of suppliers, but also caused by not managing those suppliers and telling them what your requirements are, which means that they are not invoicing you in an efficient manner. This is procurement management and the aim is to get a control on your business costs because all of those trabnsactions and suppliers are costing you money every time that you post an invoice to your purchase ledger.
Every purchase invoice costs you maybe £30 or £40 to process from start to finish. So that’s from raising the order the whole way through to payment and reconciling the bank. If you can take some cost out of that process, there’s a benefit to you.
It frees up resource within your finance team to do other work.
It’s pretty simple & here are some pointers for you:
1) Run a nominal report by supplier for the nominal codes that you are going to review. Look down that and, with colleagues, seewhich of the suppliers can actually supply more products than they’re currently supplying, whether that’s geographical spread, or product spread or …..
2) Request information from each supplier about the products they supply you with and ask at the same time what else they could supply as part of your cost reduction & spend optimisation programme.
3) Once you get the information back in from the suppliers about which products they’re supplying & could supply, go into the detail of it on a spreadsheet and mark which items could be provided by another existing supplier.
4) with that detail you have the tools to tender the business as part of your cost reduction efforts.
An aim of your procurement management programme could be to reduce the number of suppliers. We had a case where a client with 25 sites had 19 suppliers for the same product range. Madness. Now, it was all done for the right reasons at the time as the sites were opening or acquired, but it was never centrally consolidated as part of a thought through procurement management programme.
In terms of spend optimisation and using cost reduction to drive down your business costs you should also be aiming for one invoice a month per supplier.
1) A consolidated monthly invoice which has a
2) schedule attached to it, showing the breakdown by nominal code for each of the sites which can be sent out to the sites
3) the sites then approve their spend before the management accounts are produced so that you’re covering all the bases.
We’ve seen situations where clients have gone from over 100 transactions a month to 1.
You can do it too. As part of your spend optimisation programme you’ll build stronger relationships with your suppliers so that your entire procurement management programme is integrated and drives down your business costs.
In terms of procurement management, understand your supplier systems and turn them to your advantage. For example, get better credit terms. If the single consolidated invoice is dated the last day of the month, which is typically what it is, and you get 60 day payment terms, you can get up to 90 day payment terms for the items delivered at the beginning of the month.
So lots of benefits and a process that we go through which you can implement either fully or in part.
It’s part of our standard TPG Fair Market Value Savings Process.
e: simonu@procurementgroup.co.uk
m: 07768 421901
