Supply chain optimisation

Supply chain optimisation is the process of reviewing and restructuring an organisation's supplier relationships to reduce costs and deliver other sustainable business benefits - without disrupting business functions, continuity, or operational resilience.

Businesses usually undertake supplier optimisation initiatives to achieve cost savings and other business benefits by way of: 

• Terminating services or suppliers no longer required.
• Consolidating suppliers providing similar services.
• Adopting alternative resourcing models (such as managed services, offshoring, or cloud-based solutions).
• Leveraging contractual terms to extract greater value.
• The level of savings achievable will depend on an organisation's risk appetite and the flexibility of its existing supply chain contracts.

There are also a number of additional non-financial benefits including:

• Aligning the supply chain with the broader business strategy (e.g. cloud/digital strategy, ESG).
• Improved governance and controls/oversight.
• Streamlining allowing for efficiencie e ein supply chain management.
• Improved contract data management.
• Stronger supplier relationships and performance.

Typically, we work alongside client business teams (and/or external consultants) in three phases:

1. Initial business case: Preparing initial business case (includes identification of key opportunities and a snapshot review of the contracting environment including potential obstacles and risks) and determination of the supplier and overall business strategy.
2. Supplier optimisation plan: Finalise supplier optimisation plan by undertaking a detailed legal review of key contractual provisions in the supplier contracts to assess ability/flexibility to achieve the initial business case in the desired timescales (and, if necessary, updating the initial business case in line with contract review findings).
3. Execution: Preparing contract execution documents and helping clients implement the optimisation plan and expected outcomes, including negotiating with key suppliers.