In procurement, total cost of ownership is a vital and widely tracked metric as it is more useful and insightful than “lowest cost.” However, even it has limitations mainly because it positions procurement function’s contributions as solely monetary.
Our research reveals that leading procurement organizations seeks to raise the total value of ownership for the organization. In addition to reducing costs, it helps accelerate growth; improve profitability and competitive strength; mitigate risk; enable operational efficiency; and foster innovation. Accenture has been analyzing the nature of total value of ownership and has identified 48 specific levers that procurement organizations can combine to help raise total value of ownership.
To help procurement decision makers sort through the options, Accenture has organized the 48 procurement levers into a deck of playing cards, with a lever on each of the 48 cards. As the cards increase in value, so does the sophistication of the lever and associated effort required.
These levers are organized into four categories that include:
Risk and sustainability
Usage and innovation
Process and operational efficiency
Our “Winning Hand” methodology offers a systematic approach to help you find new ways to raise the procurement function’s contribution to business success. The idea here isn’t to select all the levers at once, but to shape a top- and bottom-line focused strategy by choosing the right group of levers for a specific category of spend.
We have created an interactive online application that procurement professionals can use to navigate and select the suitable total value of ownership levers for any category of spend.
To create your Winning Hand, visit https://www.accenture-winning-hand.com/.
Read the brochure to learn about the “Winning Hand” methodology to identify and solve procurement-related challenges. [PDF, 1.50 MB]
Accenture’s “Winning Hand” methodology considers three criteria to recommend the right set of levers for a particular category of spend:
The complexity of managing the category.
The criticality of the category to the organization.
The capability of the procurement organization to execute on advanced value management strategies.
These criteria act as filters that produce a calibrated set of levers applicable to a given situation. Based on your input, the “Winning Hand” application helps you select the best levers to solve purchase issues and reposition your procurement function as a strategic player within the organization.
Explore how a leading consumer goods company used the “Winning Hand” application to better manage price across multiple vendors, track spend, develop new recycling and reuse programs, and streamline the purchasing process.
The application contains five modules:
Create Your Winning Hand
Procurement decision makers evaluate a category of spend based on criticality, complexity and their organizational capability—selecting the most appropriate ways to maximize total value of ownership for the company’s specific category and unique situation.
How to Play
You receive explicit instructions on how to use and benefit from the application.
View All Strategies
You can view all 48 total value of ownership levers and associated content as reference material within any one of the four categories of total value of ownership.
You can access a range of Accenture materials on sourcing and procurement strategies, and leading approaches to maximize the total value of ownership.
Sample Winning Hands
You can review a collection of category-specific, sample winning hands from other high-performance procurement organizations.