Spikes Cavell USA You are currently on the US website. Switch to the UK site

10 point plan

Rapid assessment of savings opportunity in 10 steps

The 10 Point Plan is a set of procurement improvement initiatives which, if successfully executed by the procurement function, have been proven to have the potential to deliver savings. The 10 Point Plan is derived from direct observation of the results of our public sector customers' efforts to transform the way they procure goods services

Map your own route to procurement savings

When used as part of a Savings Opportunity Assessment and supported by use of the Observatory's Spend & Contract Analytics tools, the 10 Point Plan will enable you to rapidly assess the potential to deliver cash savings and process efficiencies in 10 key areas:

  • 1.Invoice Consolidation

    Reducing the administrative cost of processing an unecessarily large number of invoices from the same supplier.

  • 6.Category Rationalization

    Reduce the number of suppliers and consolidate spend into negotiated contracts offering better value from higher throughput in categories where you have more suppliers than average for your sector.

  • 2.Long Tail Consolidation

    Eliminating the burden and cost of suppliers with whom you spend relatively little in aggregate over the course of a year.

  • 7.Compliance, Contracted Suppliers

    Redirecting spend from non-contracted suppliers in those categories where you have already have one or more suppliers governed by a formal contract and reducing "maverick spend".

  • 3.Payment Recovery

    A detailed analytical review to identify, validate and recover a range of payment anomalies which typically go undetected by conventional pre and post payment controls in the accounts payable process.

  • 8.Collaboration, Common Suppliers

    Indentifying other public bodies who buy from the same suppliers where the potential exists to harness the group's collective buying power.

  • 4.Improved Terms

    Extending the number of suppliers who are actively managed on the basis of spend value, negotiating improved terms commensurate with the amount of spend.

  • 9.Price Variance

    Purchasing goods and services at the lowest price where a supplier has sold the same goods or services at different price points across time, departments and / or multiple public sector bodies.

  • 5.Category Extension

    Increasing competitive tension by introducing new suppliers in those categories where there are fewer suppliers than the average for the sector.

  • 10.Category Re-engineering

    Transforming the way you procure goods and services in complex categories using techniques including re-specification, demand management and supplier engagement.

"So far we’ve delivered savings in the region of $500,000 and our analysis indicates that there’s plenty more to come."

Bill Ward, City of Lee's Summit