Procurement & Supply Chain Consulting for Financial Services
Efficient Material Cost Management in the Financial Services Industry
The core activity of financial institutions such as banks and insurance companies is the provision of services. Procurement is therefore often considered to be less important than in industrial companies. In many cases, there are insufficient resources for effective procurement management. Nevertheless, optimizing your procurement can result in significant savings, which have an immediate effect on your success and liquidity and are often underestimated in their importance.
As a specialized procurement consultancy, we advise both regional banks and insurance companies and internationally established companies and banking institutions on optimizing their procurement costs. Thanks to our many years of experience, we know the challenges of the financial services sector and recognise that concepts that have proven to be successful in the industrial environment are not easily transferable to this field. This is why we have developed industry-specific organizational concepts and procurement levers to achieve significant long-term savings, which have a measurable affect on our clients’ profits.
How do we do it?
Analysis and unlocking indirect spend potential
The product groups relevant to financial service companies can be divided into three categories: IT and telecommunications, services and general management and the building industry. Because these groups are not part of the value chain, they are often described as ‘indirect spend’. In particular, this term describes external expenses for IT programming, hardware and software, marketing, distribution logistics, facility management and other areas.
Optimizing IT and telecommunications costs
Banks and insurance companies process bulk data that must be kept user friendly, secure and reliable. Services for customers, such as online banking, must also always comply with the latest technological standard in order to provide customers with access to important functions and generate competitive advantages. These at times irregular and one-time requirements are often widely handled by external service providers and are rarely professionally managed. INVERTO is the ideal partner for the cost and quality-optimized procurement of hardware and software.
During the project, we act as an interface between your IT and procurement departments and create the basis for needs-based demand planning. IT skills, the commercial expertise of your procurement department and our consulting experience minimise your costs with equal or increased service expertise. When the right measures are implemented, such as standardising service provider profiles, benchmarking and demand management, double-digit percentage savings are not uncommon.
Optimizing the cost of services: marketing, logistics and travel costs
Optimizing marketing procurement is also one of INVERTO’s core competencies. This is not about restricting the creativity of marketing departments, but supporting them in procurement-related operations. Our established database suggests suitable suppliers, from agencies, media, fulfilment, advertising and printed material to POS material. We also assist you to successfully implement an agency pitch, introduce transparency to media agencies’ pricing or introduce an international print pool, for example. We have the appropriate benchmarks to determine the price of supplier relationships. Our consulting expertise is not limited to price; we also assist you in designing efficient media mixes and measuring marketing success. Our consultants have the necessary sensitivity to operate successfully and convincingly in cross-functional working environments.
The procurement of logistics services in the financial services sector, such as distribution and postal services, also requires a holistic approach and a considerable coordination effort when it comes to implementation. Identifying the most efficient and cost-effective transport options and routes is a real challenge for locally active branch networks. We start the logistics optimization process by analysing requirements, where you define the required service levels. On this basis, we look for service partners who deliver the required reliability and competitiveness. In a market that is constantly changing, it is not only about reducing costs; quality of service is also extremely important. Our consultants will find the right partner for you.
Cost reduction in the management and building fields
Facility management is frequently a matter of handling a large number of services with a small number of external partners. This means that the task package for individual suppliers becomes more attractive and the coordination effort for the client is reduced. By clearly defining the services required, we can already determine future costs. We have the experience needed to achieve optimized demand management and carry out target-oriented tendering.
We unlock the potential in your company
INVERTO goes beyond developing concepts to become an implementation partner. If savings potential has been identified in the product groups, we support you with the implementation phase and, where necessary, the transition to new suppliers. In addition to any newly established processes to ensure sustainability, the results of our projects include signed contracts with suppliers to secure the savings achieved and the required quality standards for the long term. We support you in implementing our customised solutions for measurable results in terms of liquidity and profits, and naturally we measure ourselves on the success of our work.
Process analysis and development
Demand consolidation within large and widely active networks often represents a particular challenge for the procurement departments of banks and insurance companies. We analyse your processes and communication channels, work with you to develop new, efficient procurement processes and establish this within the specialist departments in your company. To practice and reinforce these processes, we conduct workshops and process simulations with all relevant employees in your branch networks. This establishes the new procurement processes in your company for the long term and involves everyone who takes part in implementing them. The processes are introduced taking into account your overall organization and integrating them into the existing system.
Have you recognised potential, but don’t want to use your own resources for procurement and procurement optimization? As procurement and supply chain management experts, we can take care of the entire procurement conception, management, optimization and monitoring of your procurement outsourcing based on goals that we define together to fit in with your company strategy. Procurement outsourcing offers companies, whose core activities are not directly related to procurement, the opportunity to carefully procure resources cost-effectively for the long term. This allows your employees to focus on your core activities, while everything you want to outsource is centrally and cost-effectively procured and made available to you by INVERTO outsourcing.
Do you want to optimize your procurement processes across all your branches and reduce costs in the long term?
Dr. Peter Wessmann is at your disposal for any questions regarding procurement optimiztion in the finance industry.