Avicon Launches Strategic Sourcing Practice

Supply chain design consultants offer procurement and spend analysis, sourcing strategy development

Supply chain design consultants offer procurement and spend analysis, sourcing strategy development

Waltham, MA — June 18, 2004 — Supply chain design specialist Avicon has launched a strategic sourcing consulting practice intended to help companies improve profit generation by increasing buying power, supplier responsiveness and material quality.

New service offerings from the strategic sourcing practice include assessments of the maturity and capabilities of an organization's procurement function, spend analysis and the planning, development and implementation of a sourcing strategy.

Avicon said its strategic sourcing assessment examines the procurement function using the company's "process, information, cash and organization" ("PICO") framework, which allows clients to determine the areas of strength and opportunities for improvement within their sourcing functions by assessing the maturity in the five areas of the strategic sourcing cycle: plan, source, procure, settle and analyze.

The consultancy said that its spend analysis would help clients identify all their organizational spend, including that which is not reflected in the company's internal systems, such as wire transfers, purchasing card and travel card purchases, and freight forwarding and insurance costs.

Utilizing a combination of analysis tools and its own expertise, Avicon categorizes the spend and defines procurement programs and initiatives to reduce the total cost associated with the acquisition of goods and services at a client.

"In today's tight economy, the most realistic and practical means to reduce costs and increase profits is to spend less on what is being bought from external suppliers," said Eliot Madow, vice president of professional services and director of the strategic sourcing practice at Avicon. "But to spend less, one must know who is buying what, why, from whom, how often and for how much throughout the entire organization."

In addition, the strategic sourcing practice at Avicon aims to help clients increase their ability to leverage technology in order to eliminate non-value-added processes and streamline routine functions, while making the best utilization of procurement specialists.