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Brexit Supplier Help

Over the past 12 months, the Brexit dial has moved ominously from safe ‘Soft Brexit’ impact to the unsettling ‘Hard Brexit’ scenario, with a worrying time in-between when it seemed ‘No Deal’ was possible. Throughout this time, we have been working with businesses across the island, analysing their supply chain risks with feedback from the trenches including;

  • “My NI-based supplier is the holder of product authorisations under REACH” – Paint Producer, Cork
  • “Our supplier has a factory in Naas and Leeds – I presume our products are coming from Naas?” – Food manufacturer, Sligo
  • “Our biggest customer is also our biggest supplier, based in Bristol” – Aviation Maintenance, Shannon
  • “We have a UK agent who is the sole distributor for UK & Ireland” – Motor Factors, Carlow
  • “Our suppliers are in mainland Europe but it’s a bulky product shipped via the UK” – Wholesaler, Athlone
  • “I have just realised 80% of our raw materials comes from the UK or NI” – Cleaning Company, Leitrim

Brexit is another business risk and Arvo use strategic sourcing techniques to reduces costs and risks associated with Britain’s exit from the EU, while defining appropriate sourcing strategies so as there is minimal interruption to our client’s supply chain.

Arvo provide strategic sourcing consultancy and have delivered practical workshops & training, specifically focusing on Brexit supply chain risks and helping SME’s answer questions such as;

 What suppliers will impact the business most if they cannot supply you tomorrow?

  1. Do you know what % of your goods and services are coming directly or indirectly from the UK/NI?
  2. Have you researched alternative non-UK suppliers?
  3. Are there contracts, licenses or regulations restricting your global sourcing strategies?
  4. Are you aware of the potential additional costs to import from Europe in terms of hubbing, customs, logistics partners, Minimum Order Quantities plus the impact on cash flow?

Therefore, let us know today how we can help build resilience into your supply chain for Brexit (& other Political, Economic & Technological events that may cause risks for your business in future).

The outcomes from an Arvo engagement include a Strategic Sourcing Plan, a completed Kraljic Analysis defining your strategic and bottleneck suppliers while we have also created a Sensitivity Analysis Tool to analyse how the different values for a set of independent variables (costs) affect a dependent variable (price/margin) under certain specific conditions (Brexit).

Finally, Arvo are working with Enterprise Ireland, InvestNI and Intertrade Ireland, who all have Brexit supports to help you on the journey to develop your contingency plan;

Contact Us or the agencies about to get support for your Strategic Sourcing Brexit risk

Review my Procurement Team

The main questions Arvo encounter when we meet potential customers are:

  • EFFECTIVENESS IN OUTCOME: What does good look like? Are we effective? What are the best practices and where can we improve? What would the benefits be if we invest in these improvements? What are the risks if we do not invest? How do we compare to similar Procurement Teams?
  • EFFICIENCY IN PROCESS: Are we efficient in everything we do? Can we work smarter, faster, better, cheaper? Where can we become leaner?
  • SKILLED FOR IMPACT: Do we have the right skill-set for the growth of our business? Do my team require new learning and development opportunities?

Other customers also ask more direct questions for support:

  • I might have the expertise but I do not have the time. I might have the time but I do not have the expertise.
  • I just need help to get better costs, quality, service, flexibility, innovation, but I do not know where to start.
  • There is too much happening, what is my priority?
  • I know my team is working hard but I do not know if they are working smart. Can I measure the improvements when we invest in them?

Ultimately, these questions always come back to the 5 key pillars that support sustainable growth: trusted people, efficient process, procurement strategy, fit for purpose use of technology, empowering knowledge.

Within Arvo’s Procurement Reviews, we benchmark the People, Process, Knowledge, Technology and Culture. We have answered the above questions for many clients.

WHY ARVO?

We spend time with our customers to understand their business and specific challenges and where they want to be in 3 to 5 years’ time. We measure where they are now and then we design the procurement roadmap they need to reach to their destination. Over the last 5 years, we have supported the development and structure of award winning procurement functions, with many references available here.

We are proud to collaborate with our customers, to engage and empower their resources, to be part of their procurement strategy design and to enable their sustainable growth by doing things right and doing the right things.

We would very much welcome the opportunity to discuss your Procurement Objectives further so feel free to contact for a quick initial discussion.

While the outcome of the process assessment will be a customised efficiency roadmap where targets can be tracked against the improvement of the procurement team’s engagement across the business, for example:

 

Arvo Procurement Dashboard image

 

Contact Us Today to discuss your Procurement Team’s Improvement Plans

Past, Present and Future

Arvo Cost Management Energy audits consultancy tactical procurement

Recently the wonderful team at IGNITE in UCC, produced this fantastic infographic documenting the Arvo story from humble supply.ie beginnings to the current range of sourcing, consultancy and training offerings under the Arvo umbrella. Our focus for the past 10 years to “help companies to save time, money and hassle” has not changed but our solutions to address your evolving market needs, have matured with our growth.

In the beginning, our eSourcing platform (supply.ie), was used by over 5,000 Irish businesses to source 3 quotes quickly for goods and services. The success of this simple tendering solution led to an appointment in 2012 to the European Commission e-Tendering Expert Group, which has advised EU Government’s with regards eProcurement. At home, saving SME’s money on Print & Stationery soon led to a demand to reduce costs in other areas, such as Utilities, whereby our Smart Energy Services helped businesses to correct MICs/Tariffs, Group Buy to leverage scale and deliver instant cost savings, while proactive businesses then invest the savings in Energy Efficient Equipment.

Presently, the Arvo business is delivering value for a range of Procurement Stakeholders with;

1. Our Brexit Sourcing Services helping businesses prepare for the imminent supply chain threats posed by Britain’s exit from the EU, especially if a “no deal” or hard-Brexit transpires

2. Our Tendering Services help both buyers and suppliers, by supporting buyers through every stage of the Strategic Sourcing event, while assisting suppliers prepare, identify, qualify and respond professionally to appropriate bid opportunities

3. While our Strategic Procurement Services and Tactical Procurement Supports help both public and private-sector clients, with their strategic focus to deliver long-term value and impact, while our Tactical Procurement expertise supports the day-to- day operational aspects of sourcing and procurement.

While predicting what the future holds is an almost impossible task, but as outlined in this Business & Finance CEO Interview, Arvo’s focus is to grow the Procurement Transformation Institute (PTI), which is a competency centre that provides a gateway to procurement education, thought leadership and training while empowering the buying community. While we will continue to research the merits of creating a decentralised group trading platform with distributed ledger technologies, to enable seamless trading experience for unknown buyers and sellers. Stay tuned for this next (r)evolution…

The Procurement Transformation Institute

On January 31st we launched the Procurement Transformation Institute in partnership with IDDEA. The PTI is a not-for-profit organisation founded by a team of expert procurement practitioners, academics, advisors and thought leaders.

Partnering with 9 procurement competency centres in Europe, PTI is positioning procurement as a preferred career for today’s and tomorrow’s professionals for the benefit of competitiveness, job creation and innovation for organisations of all sizes in Ireland.

The PTI is based on the island of Ireland and works in collaboration with SMEs, multinationals, universities, professional associations and institutes. Our vision and mission are international; we research and translate procurement standards into deliverable value for organisations and individuals.

 

The PTI is built around 5 pillars:

PTI ACADEMY: whose mission is to develop a CPD Procurement Membership Body offering all procurement resources relevant mind set, skillset and toolset training that will steer and guide them on the progression on their career path.

PTI COMMUNITY: whose mission to create an environment of peer to peer communication and knowledge exchange, access up to date industry and European wide accepted standards, tools, insight, initiatives and trends. The PTI Community forum was launched on April 25th, 2018. See below for more information.

PTI EUROPE: As part of the Procure2Innovate H2020 Initiative, the PTI is excited to be part of the European Initiative to promote and disseminate Innovation Procurement Best Practices. The aim is to improve support for public procurers in implementing innovation procurement by establishing and expanding competence centres for innovation procurement in 10 EU member States. Indeed, to date, competence centres have largely worked autonomously and with little cross-border cooperation.

PTI EDUCATION: whose mission is to provide and promote European-wide accredited procurement certification in partnership with UCC, to pipeline and upskill procurement resource to benefit the growth of businesses.

PTI RESEARCH: whose mission is to deliver valuable and on-going research about the impact

of the changing environment on procurement. We want to ensure that the procurement profession stays relevant for the future. Through continuous optimisation and transformation, ongoing innovation is driven by industry-led research and thought leadership.

 

To keep up to date with the PTI and to gain greater insight into the world of public procurement, become a member of our inaugural Community forum by signing up here.

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