Optimising Procure-to-Pay and Contract Management with Zycus: Transformative Strategies for Australian Enterprises

June 26, 2023

In today's highly competitive business environment, efficient management of the procure-to-pay (P2P) process and contract administration are crucial for Australian enterprises. Zycus, a leading global provider of comprehensive and end-to-end Source-to-Pay software, can significantly improve these processes. In this blog, we explore how Zycus can optimise the end-to-end P2P process and contract management for Australian companies, substantiated by relevant case studies and examples.

Zycus: A Leader in Procure-to-Pay and Contract Management Solutions

Zycus offers advanced and integrated solutions that optimise the P2P cycle and contract management. Its powerful software suite provides end-to-end automation, analytical insights, and seamless integration with ERP systems. By leveraging Zycus, businesses can streamline their procurement operations, gain better control over contracts, and realise significant cost savings.

Case Study: Driving Efficiency with Zycus

Let's consider the case of Coca-Cola Amatil, an Australian bottler of The Coca-Cola Company. Faced with disparate procurement systems and fragmented supplier information, Coca-Cola Amatil sought a solution to integrate and streamline their P2P process. Implementing Zycus’ Integrated Source-to-Pay suite, they achieved end-to-end procurement automation, leading to improved supplier relationships, increased operational efficiency, and considerable cost savings.

Benefits of Zycus for Australian Companies

Streamlined Procure-to-Pay Process

Zycus simplifies the P2P process by automating routine tasks, such as purchase requisitions and invoice approvals. This automation results in a faster, more efficient P2P cycle, freeing up valuable time for procurement teams to focus on strategic activities.

Enhanced Contract Management

Zycus' contract management solution provides a centralised repository for all contracts, making it easier to track contract terms, key dates, and compliance issues. Automated reminders and renewals reduce the risk of contract lapses, while the built-in analytics provide valuable insights for negotiation and decision-making.

Better Supplier Relationships

Zycus improves supplier relationships through its Supplier Management module. It enables businesses to monitor supplier performance, ensuring compliance and fostering better communication. This leads to stronger, more collaborative relationships that drive business value.

Cost Savings

By optimising the P2P process and contract management, Zycus can deliver significant cost savings. Automation reduces processing time and errors, while better contract management can lead to favourable terms and conditions. Combined, these factors can result in substantial bottom-line benefits.

Zycus is a powerful tool for Australian companies looking to optimise their P2P process and contract management. Its advanced solutions streamline operations, enhance visibility, improve supplier relationships, and realise cost savings. As business environments continue to evolve, companies that leverage technology like Zycus to enhance their procurement and contract management will gain a competitive edge.

Contact us today, trace. your supply chain consulting partner.

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Procurement
February 10, 2025

Procurement & Cost Optimisation: A Conversation with Kingston Yong

How can organisations reduce procurement costs while maintaining service quality? Kingston Yong from Trace Consultants shares expert insights on procurement optimisation, supplier negotiations, and navigating rising supply chain costs.

Procurement & Cost Optimisation: A Conversation with Kingston Yong

Introduction: How Procurement Can Unlock Cost Savings and Drive Strategic Value

In today’s economic climate, organisations are under increasing pressure to reduce costs while maintaining service quality. Rising supply chain costs, inflationary pressures, and growing regulatory requirements make effective procurement strategies more critical than ever.

To explore how businesses can optimise their procurement functions, we spoke with Kingston Yong, Manager at Trace Consultants, about the key cost-saving levers in indirect procurement, supplier negotiations, contract performance, and strategic procurement transformation.

Interview with Kingston Yong

Q: How can organisations reduce costs through indirect procurement projects?

Kingston Yong:
Indirect procurement is often overlooked, but it represents a significant cost-saving opportunity for businesses. Many organisations focus on direct spend—such as raw materials and manufacturing components—while indirect categories like facilities management, IT, professional services, travel, and marketing can account for 20-40% of total spend.

By conducting a detailed spend analysis, organisations can identify inefficiencies, consolidate suppliers, and negotiate better rates. One of our clients in the healthcare sector saved 22% on facility management costs by optimising their contract structure and moving to a performance-based pricing model.

Q: How can procurement benchmarking and supplier negotiation strategies unlock savings?

Kingston Yong:
Benchmarking is essential to understanding where an organisation’s procurement costs sit in comparison to industry standards. We often see businesses overpaying for services and materials due to legacy contracts, lack of market visibility, or underutilisation of economies of scale.

By leveraging market intelligence and procurement analytics, organisations can:

  • Identify cost reduction opportunities by comparing current spend against industry benchmarks.
  • Improve supplier negotiations by using competitive insights.
  • Implement structured tendering processes to drive cost efficiencies.

At Trace Consultants, we have helped clients reduce supplier costs by introducing structured category management and negotiation strategies.

Q: How can organisations reduce supply chain costs without compromising service quality?

Kingston Yong:
Cost reduction must be balanced with operational efficiency. The biggest mistake companies make is focusing only on unit price reduction, which can lead to quality issues, service delays, and supply risks.

Instead, we recommend an end-to-end cost optimisation approach that includes:

  • Supplier performance management – Ensuring suppliers deliver on agreed service levels to avoid hidden costs.
  • Demand management – Reducing unnecessary purchases and improving forecasting accuracy.
  • Process automation – Streamlining procurement processes through digital tools to cut administrative costs.

For example, we helped a retail business achieve a 15% cost reduction in packaging procurement while maintaining quality by consolidating suppliers and leveraging long-term contracts.

Q: How can Australian businesses improve contract performance and supplier management?

Kingston Yong:
A well-managed contract ensures cost predictability, performance compliance, and risk mitigation. However, many businesses lack real-time visibility into supplier performance, leading to cost overruns and operational inefficiencies.

Key steps to improving contract performance include:

  • Implementing clear KPIs and SLAs to measure supplier effectiveness.
  • Using contract lifecycle management (CLM) tools to track performance and compliance.
  • Regular supplier reviews and renegotiations to ensure continuous value delivery.

Q: How can businesses navigate the rising costs of supply chain operations?

Kingston Yong:
Supply chain costs are increasing due to inflation, transportation expenses, and rising raw material costs. To combat these pressures, businesses should focus on:

  • Strategic sourcing – Evaluating alternative suppliers to diversify risk and improve pricing.
  • Supply chain collaboration – Working with suppliers to identify cost efficiencies.
  • Process standardisation – Reducing variation in procurement processes to lower administrative costs.

At Trace Consultants, we recently helped a manufacturing client cut logistics costs by 20% by redesigning their supplier distribution network.

Q: How can organisations move from tactical procurement to strategic procurement?

Kingston Yong:
Many organisations still operate in a reactive, tactical procurement model, where procurement teams focus on transactional purchasing rather than strategic value creation. Moving towards strategic procurement involves:

  • Developing category strategies to align procurement with business goals.
  • Enhancing supplier partnerships to drive innovation and long-term cost efficiencies.
  • Leveraging digital procurement tools to automate and optimise processes.

How Trace Consultants Can Help

At Trace Consultants, we specialise in helping businesses:

Conduct Procurement Spend Analysis – Identifying cost-saving opportunities across indirect categories.
Optimise Supplier and Contract Management – Implementing performance-driven contract strategies.
Develop Procurement Benchmarking & Cost Optimisation Strategies – Aligning pricing structures with market intelligence.
Enable Digital Procurement Transformation – Implementing automation and analytics for smarter decision-making.
Drive Strategic Sourcing Initiatives – Reducing costs while maintaining service excellence.

With a data-driven approach and deep procurement expertise, Trace Consultants empowers organisations to unlock cost savings, improve supplier relationships, and future-proof their procurement functions.

Final Thoughts

Procurement is no longer just about cost-cutting—it’s a strategic function that impacts an organisation’s long-term profitability and supply chain resilience.

For businesses looking to reduce procurement costs, improve supplier performance, and drive operational excellence, now is the time to act.

Want to discuss how Trace Consultants can help? Get in touch today.

Procurement
August 25, 2024

Cost Optimisation in ANZ Retail, FMCG, and Manufacturing

Warehouse Network Optimisation and Supply Chain Strategic Reviews offer ANZ Retail, FMCG, and Manufacturing organisations the opportunity to achieve significant cost savings. Learn about the strategies, tools, and expert guidance available from Trace Consultants to enhance your supply chain efficiency and unlock financial improvements.

Cost Optimisation in ANZ Retail, FMCG, and Manufacturing

In an increasingly competitive market, ANZ Retail, FMCG, and Manufacturing organisations are under constant pressure to reduce costs while maintaining or even improving service levels. The challenge is particularly acute given the complexities of managing extensive warehouse networks and intricate supply chains. Warehouse Network Optimisation (WNO) and Supply Chain Strategic Reviews (SCSR) are powerful tools that can unlock substantial fixed, variable, and transport cost improvements, creating a more resilient and responsive supply chain. This article delves into the techniques used in WNO, the toolsets available, and how Trace Consultants can assist organisations on this transformative journey.

The Role of Warehouse Network Optimisation in Cost Reduction

1. Understanding Warehouse Network Optimisation

Warehouse Network Optimisation involves evaluating and restructuring the layout, location, and operation of warehouses to improve efficiency, reduce costs, and enhance service levels. It is a strategic approach that considers a wide array of factors, including inventory management, transportation costs, demand patterns, and proximity to customers. The goal is to find the optimal balance between these factors to minimise costs while maximising service delivery.

2. Techniques in Warehouse Network Optimisation

a) Facility Location Modelling:
Determining the optimal number and location of warehouses is crucial for balancing cost and service. Facility location modelling uses advanced algorithms to evaluate various scenarios, considering factors like transportation costs, service levels, and regional demand. By optimising warehouse locations, organisations can reduce transportation costs and improve delivery times.

b) Inventory Optimisation:
Holding too much inventory ties up capital and increases storage costs, while holding too little can lead to stockouts and lost sales. Inventory optimisation techniques use data analytics to predict demand more accurately, allowing for optimal inventory levels that reduce costs without compromising service.

c) Network Simulation:
Simulating various network scenarios allows organisations to test different strategies before implementing them. Network simulation tools can model the impact of changes in demand, transportation costs, and other variables, providing insights into the most cost-effective network configuration.

d) Cross-Docking:
Cross-docking is a practice where products from suppliers are directly transferred to outbound transportation without being stored in the warehouse. This technique reduces storage costs and accelerates the delivery process, contributing to both fixed and variable cost reductions.

e) Consolidation and Deconsolidation Centres:
These centres are used to consolidate goods from various suppliers into fewer shipments, reducing transportation costs. Conversely, deconsolidation centres break down bulk shipments into smaller orders for final delivery. Both techniques are critical in managing transportation costs effectively.

3. Toolsets for Warehouse Network Optimisation

Warehouse Network Optimisation relies on sophisticated tools and technologies to achieve its objectives. Some of the most effective toolsets include:

a) Geographic Information Systems (GIS):
GIS tools are essential for analysing spatial data, including the geographical distribution of customers, suppliers, and warehouses. They help in visualising and identifying optimal warehouse locations.

b) Advanced Planning and Scheduling (APS) Systems:
APS systems integrate various supply chain functions, allowing for more accurate demand forecasting, inventory management, and production planning. These systems are crucial in supporting network optimisation efforts.

c) Supply Chain Modelling Software:
Software tools like Llamasoft, Coupa, and JDA offer powerful modelling capabilities that can simulate and optimise warehouse networks. These tools allow organisations to evaluate different scenarios and make data-driven decisions.

d) Data Analytics Platforms:
Data analytics platforms enable organisations to process large volumes of data to gain insights into demand patterns, transportation costs, and other critical factors. Advanced analytics can identify cost-saving opportunities and support informed decision-making.

The Value of Supply Chain Strategic Reviews

1. What is a Supply Chain Strategic Review?

A Supply Chain Strategic Review is a comprehensive assessment of an organisation's supply chain strategy, operations, and performance. It involves evaluating current processes, identifying inefficiencies, and developing strategies to enhance overall supply chain performance. This review is particularly valuable for identifying cost reduction opportunities across the supply chain, from procurement to distribution.

2. Techniques in Supply Chain Strategic Reviews

a) Value Stream Mapping:
Value stream mapping is a lean management technique used to visualise and analyse the flow of materials and information throughout the supply chain. By identifying waste and bottlenecks, organisations can streamline processes and reduce costs.

b) Spend Analysis:
Spend analysis involves examining an organisation's procurement data to identify patterns, inefficiencies, and opportunities for cost savings. This technique is particularly useful in reducing procurement costs by consolidating suppliers, negotiating better terms, or sourcing more cost-effective materials.

c) Supplier Relationship Management (SRM):
SRM is a strategic approach to managing an organisation's interactions with suppliers. By developing strong relationships with key suppliers, organisations can negotiate better terms, ensure supply continuity, and reduce costs.

d) Risk Management:
Supply chain disruptions can lead to significant costs, particularly in industries with complex global supply chains. Risk management techniques involve identifying potential risks, assessing their impact, and developing mitigation strategies to minimise disruptions and associated costs.

e) Benchmarking:
Benchmarking involves comparing an organisation's supply chain performance against industry standards or competitors. This technique can reveal areas where the organisation is lagging and provide insights into best practices that can be adopted to improve efficiency and reduce costs.

3. Toolsets for Supply Chain Strategic Reviews

The effectiveness of a Supply Chain Strategic Review depends on the use of the right tools. Some of the most valuable toolsets include:

a) Enterprise Resource Planning (ERP) Systems:
ERP systems integrate various business processes, including procurement, inventory management, and distribution. These systems provide a holistic view of the supply chain, enabling more effective strategic reviews.

b) Business Intelligence (BI) Tools:
BI tools such as Power BI and Tableau allow organisations to analyse supply chain data and generate actionable insights. These tools are critical in identifying inefficiencies and cost-saving opportunities.

c) Risk Management Software:
Risk management tools help organisations identify, assess, and mitigate supply chain risks. These tools can model different risk scenarios and their potential impact on the supply chain, allowing for better preparedness.

d) E-Procurement Systems:
E-procurement systems streamline the procurement process by automating supplier selection, order processing, and payment. These systems can reduce procurement costs and improve supplier management.

Unlocking Cost Improvements in ANZ Retail, FMCG, and Manufacturing

1. Fixed Cost Improvements

Warehouse Network Optimisation and Supply Chain Strategic Reviews can significantly reduce fixed costs by optimising facility locations, inventory levels, and operational efficiency. By minimising the number of warehouses and improving their layout and operations, organisations can reduce rent, utilities, and labour costs.

2. Variable Cost Improvements

Variable costs, including transportation and inventory carrying costs, can be reduced through better demand forecasting, route optimisation, and supplier consolidation. Techniques like cross-docking and the use of consolidation centres further contribute to variable cost savings by reducing the need for storage and minimising transportation expenses.

3. Transport Cost Improvements

Transportation costs often represent a significant portion of total supply chain costs, particularly in the ANZ region, where distances between production facilities, warehouses, and customers can be vast. Warehouse Network Optimisation can reduce transport costs by optimising warehouse locations to be closer to key markets and using techniques like route optimisation and load consolidation.

How Trace Consultants Can Help

Trace Consultants is uniquely positioned to assist ANZ Retail, FMCG, and Manufacturing organisations in their Warehouse Network Optimisation and Supply Chain Strategic Review efforts. With a deep understanding of the region's market dynamics and a proven track record of delivering cost-saving solutions, Trace Consultants offers a range of services to support organisations on this journey.

1. Expertise in Network Optimisation

Trace Consultants brings extensive experience in Warehouse Network Optimisation, leveraging advanced tools and techniques to deliver tailored solutions that meet the unique needs of each client. Their team of experts works closely with organisations to analyse current warehouse networks, identify areas for improvement, and implement cost-saving strategies.

2. Comprehensive Supply Chain Strategic Reviews

Trace Consultants conducts thorough Supply Chain Strategic Reviews that go beyond surface-level analysis. By examining every aspect of the supply chain, from procurement to distribution, Trace Consultants identifies inefficiencies and develops actionable strategies to enhance performance and reduce costs.

3. Access to Advanced Toolsets

Trace Consultants utilises cutting-edge tools and technologies, including GIS, APS systems, and supply chain modelling software, to deliver data-driven insights and optimise supply chain operations. Their expertise in these toolsets ensures that organisations receive the most accurate and effective solutions.

4. Customised Solutions for ANZ Organisations

Understanding the unique challenges faced by ANZ Retail, FMCG, and Manufacturing organisations, Trace Consultants offers customised solutions that align with local market conditions. Their approach is flexible and adaptable, ensuring that each client receives a solution tailored to their specific needs and objectives.

Driving Competitive Advantage through Optimisation

Warehouse Network Optimisation and Supply Chain Strategic Reviews are not just about reducing costs; they are about driving competitive advantage in a highly dynamic market. For ANZ Retail, FMCG, and Manufacturing organisations, these strategies offer a pathway to improved efficiency, greater responsiveness, and enhanced customer satisfaction.

Procurement
September 25, 2024

Trace Consultants' Procurement Excellence Framework

Trace's newly launched Procurement Excellence Framework covers every step of your procurement journey, from strategy through to execution.

As Australian businesses are impacted by a slowing economy and high inflation, it is vital for organisations to ensure the procurement function is focused on the key strategic challenges for the organisation and continuing to innovate the way it operates and delivers value for the business. Procurement is a key function as it can directly impact:

Cost Savings: Effective procurement strategies help businesses secure goods and services at the best possible prices. By negotiating favourable terms with suppliers, companies can reduce their overall operational costs, leading to improved profitability.

Quality Control: Procurement ensures that the business sources high-quality materials and services, which directly affects the quality of the final product or service. Reliable procurement processes involve rigorous evaluation of suppliers to maintain consistent quality standards.

Risk Management: A well-structured procurement process helps identify and mitigate risks in the supply chain, such as supplier reliability, compliance with regulations, and geopolitical risks. By diversifying suppliers and building strong relationships, businesses can safeguard themselves against potential disruptions.

Supply Chain Efficiency: Efficient procurement optimises the supply chain by ensuring timely delivery of goods and services. It involves planning and forecasting demand accurately to avoid stockouts or overstock situations, thereby streamlining operations.

Compliance and Sustainability: Procurement plays a key role in ensuring compliance with legal and regulatory requirements. It can also drive sustainability by selecting suppliers that adhere to ethical practices and environmental standards, aligning with corporate social responsibility (CSR) goals.

Given the growing emphasis on organisations to respond to each of these business needs trace. has developed a comprehensive Procurement Excellence Framework spanning the entire procurement journey.

1. Strategic Procurement

Increasingly, procurement is at the forefront of strategy. With economic and political events fundamentally changing supply chains, organisations must consider the impacts of procuring goods and services – navigating service, profitability, and risk.

Trace. can help executives answer these key questions to help review their procurement strategy:

1. What are the organisation's overall goals and objectives?

      • How does procurement align with and support the company’s strategic goals?

      • What specific outcomes is procurement expected to achieve, such as cost savings, quality improvement, or innovation?

2. What is our current spend and procurement process?

      • What is the total spend across different categories, and how is this spend managed?

      • Are there any inefficiencies or areas of excessive cost within the current procurement process?

      • Are there changes in the business that could impact the level of activity being procured (e.g. if business volume has declined can some activities be delayed / rescheduled?)?

3. Who are our key suppliers, and what is our supplier management strategy?

      • Who are the critical suppliers, and what are their strengths and weaknesses?

      • How do we manage supplier relationships to ensure quality, reliability, and strategic partnerships?

4. How can we mitigate risks in the supply chain?

      • What potential risks exist in the supply chain, such as supply disruptions, geopolitical issues, or compliance risks?

      • What risk mitigation strategies can we implement, such as supplier diversification or contingency planning?

5. How can we optimise our sourcing strategy?

      • What sourcing strategies can we employ to reduce costs and enhance value (e.g., global sourcing, single vs. multiple sourcing)?

      • How can we leverage competitive bidding, negotiations, and strategic partnerships to get the best value?

6. What role does sustainability and ethics play in our procurement strategy?

      • How can procurement support the organisation’s sustainability and corporate social responsibility (CSR) goals?

      • Are our suppliers compliant with ethical standards, environmental regulations, and fair labour practices?

7. How do we ensure quality and compliance in our procurement activities?

      • What measures are in place to ensure that procured goods and services meet the required quality standards?

      • How do we ensure compliance with relevant laws, regulations, and internal policies?

8. How can we leverage technology and data in procurement?

      • What procurement technologies can enhance our procurement processes (e.g., e-procurement platforms, spend analytics)?

      • How can data analytics be used to gain insights into spending patterns, supplier performance, and market trends?

9. How do we measure procurement performance?

      • What key performance indicators (KPIs) should be used to measure the success of procurement activities (e.g., cost savings, procurement cycle time, supplier performance)?

      • How do we track and report on procurement’s contribution to the organisation’s strategic objectives?

10. How can we foster innovation through procurement?

      • How can we collaborate with suppliers to drive innovation and improve products or services?

      • Are there opportunities to explore new markets, materials, or technologies through strategic supplier partnerships?

11. What is our long-term procurement strategy?

      • How will our procurement strategy evolve to meet future business needs and market changes?

      • What are our plans for developing and upskilling the procurement team to support strategic goals?

2. Sustainable Procurement

Sustainability is a key consideration for organisations – and Procurement functions can play a significant role by shaping how organisations operationalise sustainability across its supply chain. Sustainable Procurement describes how the process of sourcing goods and services can achieve positive environmental, social, and economic impacts.

Five key considerations for sustainable procurement opportunities:

Environmental

     1. Product Design: Are you choosing products and services that are energy-efficient? Are you choosing products that are made from recycled materials, or have minimal packaging?

     2. Emissions: Are you considering suppliers emissions as part of measuring your own Scope 3 emissions?

Social

     3. Suppliers: Do you have an appropriate supplier due diligence and risk assessment process in place to know the level of risk within your supply chain? Do you have a Modern Slavery Statement?

Governance

     4. Total Cost of Ownership: Are you considering the total cost of ownership to ensure cost-effective purchasing decisions?

     5. KPIs & Accountability: Do you have appropriate KPI and Performance Reporting to manage suppliers' sustainability?

How Trace Consultants Can Help:

We can help your organisation assess the effectiveness of current sustainable procurement practices and support the design and development of a pragmatic strategy and roadmap to drive improvement in targeted areas.

3. Category Management

Category Management involves dividing products and services into discrete groups or categories. This allows organisations to focus on specific segments of their procurement spend, tailoring strategies to the unique characteristics and market conditions.

At trace. we take a three-step approach to help review your category management:

1. Category Analysis - When is the last time you reviewed your Categories?

     a. Identify cost savings potential (rate reviews & benchmarking)

     b. Identify areas of concentrated spend

     c. Scenario modelling of current trends, competitor positions & options

     d. Evaluate risks with existing suppliers and emerging market trends

2. Strategic Alignment - How aligned are your category strategies to the business’ current needs

     a. Supplier strategy – e.g. balance strategic relationships & competition

     b. Evaluating a category management fit with broader strategic vision and goals

     c. Review gaps across procurement processes and strategic objectives

3. Category Execution - What opportunities exist to implement changes across categories?

     a. Executing category strategies through sourcing and procurement practices.

     b. Ensuring compliance with procurement policies and procedures.

     c. Monitoring performance and adjusting strategies as needed

Example Categories for an Automotive Manufacturer

Direct Materials

      • Raw Materials: Steel, aluminium, plastics, rubber.

      • Powertrain: Engines, transmissions, systems.

      • Chassis Components: Suspension systems, brakes.

      • Electrical: Wiring harnesses, batteries, alternators.

      • Interior: Seats, dashboards, infotainment systems.

      • Exterior: Body panels, windows, lighting systems.

      • Tires and Wheels: Tires, rims, alloy wheels.

      • Maintenance, Repair, and Operations (MRO)

Indirect Materials and Services

      • Office Supplies & Equipment: Stationery, computers, etc.

      • Facilities Management: Cleaning, HVAC, Security.

      • Utilities: Electricity, water, gas.

      • IT and Telecommunications: Software, hardware, etc.

      • Professional Services: Consulting, legal, marketing.

How Trace Consultants Can Help:

For businesses looking to review their category management, Trace Consultants can help review category opportunities, identify cost-savings, drive standards and consistency, and align strategy and procurement.

4. Cost Reduction & Spend Analytics

Cost Reduction and Spend Analytics involves analysing spend data to identify variances and anomalies. This allows the organisations to benchmark, identify savings opportunities and improve supplier performance.

At trace. we address these key questions to help review your spend and reduce costs:

1. Benchmarking Analysis - When is the last time you monitored your current spend against market data?

     a. Leverage tools to find spending anomalies

     b. Compare current spend against historical data, group spend and industry standards

     c. Track budget deviations and investigate root causes using AI & machine learning

2. Scope & Rate Review - How often are scopes and rates reviewed to align to the business’ strategy?

     a. Identifying services to scale down or eliminate

     b. Supplier management - Renegotiating terms with suppliers for better rates & service

     c. Market analysis – leverage scale via benchmarking and leveraging bulk purchasing

3. Contract & KPI Review - What opportunities exist to manage variances and reduce costs?

     a. Auditing supplier performance to meet compliance requirements

     b. Implementing three-way matching to verify invoices – order, received, invoiced.

     c. Use automated technology to reduce errors

How Trace Consultants Can Help:

For businesses looking to reduce costs and analyse their spend, Trace Consultants can help identify cost-saving opportunities, detect spending anomalies and variances, optimise service scope and pricing, and address variances and invoicing errors.

5. Procure to Pay Optimisation

Procure-to-Pay (P2P) is the process that covers all steps from requisitioning goods and services to paying suppliers, ensuring streamlined purchasing and financial operations within an organisation.

At trace. we take a three-step approach to answer key questions that can help optimise your P2P process:

1. How mature is your P2P process?

     a. Review the efficiency and maturity of the existing P2P process

     b. Compare current process against industry standards

     c. Evaluate risks associated the existing process

2. Have contract scope and rates been reviewed for market competitiveness?

     a. Review goods or services being procured against specifications

     b. Review scope of work against contractual agreements incl changes or additions

     c. Review rates charged match agreed-upon rates and validate for market competitiveness

3. What opportunities exist to optimise your P2P process?

     a. Identifying key requirements for a technology solution that aligns with business needs

     b. Developing a business case to outline benefits of an integrated P2P solution

     c. Implementing an integrated P2P solution

How Trace Consultants Can Help:

For businesses looking to optimise their procure-to-pay process, Trace Consultants can help conduct a maturity assessment and gap analysis, identify opportunities for optimisation and uplift processes, and conduct a strategic alignment and operating model review.

6. Contract Performance and KPI Management

A well-defined and well-understood scope of works prevents the risk of service delivery not meeting requirements or intended quality as well as change requests that can negatively impact costs, operational efficiencies & customer experience. Before KPIs are considered, base scopes must be well defined.

How Trace Consultants Can Help:

For businesses looking to improve their Contract Performance and KPI Management, Trace Consultants can help realign and control the scope of work, manage changes in scope, govern contract health and performance, and develop performance metrics and scorecards.

7. Supplier Relationship Management

Supplier collaboration can help drive effective procurement by fostering transparency, innovation, and shared goals, leading to improved cost efficiencies, quality, and supply chain resilience.

There are four key components of an effective Supplier Relationship Management process:

1. Who are your strategic suppliers?

      • Identify key strategic relationships to engage in SRM

      • Allocate resources effectively

2. Do you have effective SRM Governance?

      • Internal governance processes

      • Clear ownership of supplier relationships

      • Oversight of supplier management and strategic decision making

3. How well are suppliers performing?

      • Define and establish key performance indicators (KPIs)

      • Develop scorecards to track and review supplier performance

4. Where can a partnership add value?

      • Collaborative initiatives for value creation with chosen strategic suppliers

      • Operational performance (time-slots, store ready deliveries, labelling, MHE, etc.)

      • Define long-term initiatives (e.g. packaging, waste, sustainability)

Effective Supplier Collaboration should drive accountability, be forward looking and consider both service & operational performance.

How Trace Consultants Can Help:

For businesses looking to review their Supplier Relationship Management, Trace Consultants can help define supplier segmentation and strategy, establish performance metrics and scorecards, conduct contract review and optimisation, and develop effective renegotiation strategy.

Interested to learn how Trace Consultants can support your organisation's procurement journey? Contact your local trace. team today.

Brisbane | Prajin Shah | Senior Consultant | +61 422 436 109
Canberra | Mathew Tolley | Partner | +61 406 848 301
Melbourne | Kingston Yong | Senior Consultant | +61 434 799 696
Sydney | Tim Fagan | Senior Manager | +61 403 746 598