Accenture is currently working with clients to help establish and operate a concept called the “Control Tower.” The Control Tower is dedicated to the examination and control of the supply and demand factors that drive total business expenditure. Its mission is to focus on activities that will make a difference over a period of less than six months.
A focused, dedicated team in tune with the business environment and supplier marketplace conditions, the Control Tower captures savings and directs them smoothly to a safe arrival on the bottom line.
Time is of the essence when managing supply, and good data is vital. Accenture has the tools and resources to help make this a reality. With access to this information, the Control Tower can establish which suppliers to focus on for maximum cost reduction opportunities.
Based on customized templates and market data, the Control Tower can prepare supplier negotiation strategies, assess associated benefits from price and contract structure initiatives. Proposed strategies are easily exchanged and validated to optimize cost reduction without harming valuable supplier relationships. Typical outcomes of such activities include price reductions ranging from 5 percent to 30 percent.
The Control Tower also helps protect and insulate businesses from supplier risks by analyzing suppliers’ financial situations and establishing minimum acceptable levels. A thorough review of contracts can help to align prices across the board, reducing efforts to monitor and maintain contracts.
Another focus of the Control Tower is cost avoidance. This is achieved by tactically managing organizations’ consumption. The Control Tower helps formulate and enforce “smart policies” that target consumption reduction by identifying short-term measures that can make a significant impact quickly. The Procurement Committee helps to reach critical decisions and communicate them to the wider organization.