Video: Integrating Procurement & Supply Chain Strategy

GRA Partner James Allt-Graham and GRA Director Craig Millis presented Integrating Procurement & Supply Chain Strategy - The next frontier of competitive advantage to the audience at the Finance and Procurement Sit-Down at the Sofitel in Sydney.

About the presentation:

Today organisations are experiencing increased sourcing complexity with extended global supply chains, increased product and supplier proliferation; longer lead times and increased supply risk. At the same time there’s an expectation to lower costs and increase service levels, while improving supply chain visibility and predictability and ensuring that supply chains meet ethical and environmental standards. 
When developed independently, Procurement and Supply Chain Strategies can have different goals (typically optimising gross margin versus net margin). This can inadvertently lead to conflict, incurring additional net cost, quality and / or service levels issues. By integrating Procurement and Supply Chain strategies there is a real opportunity to increase both gross and net margins – and ultimately deliver a competitive advantage. 
Focus Areas covered:

  • Key competitive capabilities for the new world
  • Common objectives and joint ownership of business outcomes 
  • Co-creating strategic sourcing & supply chain strategies to increase gross & net margin
  • Collaborative activities that will lead to improved supplier performance and value for money
  • Joint efforts towards building ethical and sustainable supply chains


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"GRA did a fantastic job in analysing our future stock needs and proposing a warehouse solution."

– Greg Williamson, Group's General Manager of Supply Chain, Amcor

Typical results

  • 20-40% inventory investment reduction
  • increased service levels ranging up to 99.9%
  • 10%-15% reduction in supply chain operating costs
  • 5%-20% spend management savings
  • the ability to fund business initiatives from operating cash flow (OCF) improvements
  • improved return on capital employed (ROCE)
  • a minimum 3:1 ROI (10:1 to 30:1 typical)