Analysis

A thorough value chain analysis can yield profitability, increased competitiveness, and a better understanding of factors driving higher productivity within a company.

In a market with intensified competition and expectations for more efficient and seamless experiences, an increasing number of companies recognize the critical role of the value chain in realizing strategic objectives.

Through conducting a value chain analysis, management can identify core activities that enhance the company’s competitiveness and gain a deeper understanding of, as well as optimize, the activities that lead to competitive advantage and higher productivity.

Now more than ever, it is crucial for companies to keep pace with developments and adapt to a constantly changing market. Those that fail to do so risk being outcompeted.

Interested in learning about essential analytical tools?

Identifying Competitive Advantages

The value chain should support the overall business strategy and be designed based on customer needs and the company’s competitive advantages.

Proper utilization of technology and digital solutions addresses customers’ new expectations.

Increased complexity can be appropriate if justified by customer desires and requirements, and it contributes to differentiating the business from competitors.

Now more than ever, it is crucial for companies to keep pace with developments and adapt to a constantly changing market.

Our Approach to Value Chain Analysis

At Caranda, we adopt an innovative analytical approach when rethinking value chains, whether it involves restructuring the supplier portfolio or fully digitizing interactions among stakeholders.

Each value chain is unique, and any further development must be built upon a thorough analysis and understanding of facts. With this foundation, businesses can move forward with changes that can be measured and validated. There are various models for such analysis, and Caranda incorporates elements from several, drawing on our extensive market experience.

Sustainable Value Chains

The focus on sustainability is growing, and both public organizations and private companies are increasingly aware of how their business can contribute to achieving the UN Sustainable Development Goals. There are numerous sustainability goals, and each entity must define which ones are essential to them and where they can make a difference.

However, what is common for all is a desire to reduce negative climate impact, ensure compliance with labor regulations, and be confident that human rights violations do not occur, while also ensuring social responsibility among their subcontractors. A value chain analysis should also include due diligence assessments in all these areas to ensure the entire value chain is as sustainable as possible.

Well-managed and efficient procurement can lead to substantial savings for both public and private organizations. That’s why analyzing the company’s procurement processes can be highly profitable.

Forward-thinking businesses must continuously work to reduce costs and strengthen their competitive position. The terms a company negotiates in the supplier market determine how much of its value creation remains as profit.

Caranda has developed a unique methodology for a systematic review of the entire supply chain. This methodology ensures that the company achieves conditions maximizing competitiveness and positions the company for future growth and profitability.

Our methods and tools generate measurable savings quickly, leaving knowledge within the organization as a lasting competitive advantage.

Interested in more articles and news from us?

Subscribe to our newsletter!

How does the methodology work in a procurement analysis?

In collaboration with your organization, Caranda conducts an analysis of the company’s supplier base, procurement organization, and processes. The analysis includes both quantitative examination of the cost base and qualitative analysis through interviews and dialogues with management and key personnel in the operational organization. The qualitative analysis also involves a review of the existing contract portfolio, assessing the quality, sustainability, and terms of existing agreements. Caranda evaluates and benchmarks the company’s performance based on selected key KPIs (Key Performance Indicators) within the optimization of procurement-driven value chains. Based on the scores for each KPI, we propose specific, measurable actions to implement what we consider the best practices for procurement. Implementing these actions will have an immediate impact on the bottom line.

Process Mapping

Process mapping is a vital tool for optimizing workflows and value chains within your organization. Ultimately, it can enhance efficiency at all levels.

Every company aims to produce goods and services as efficiently as possible, ensuring seamless collaboration and communication both internally and externally. This is equally important when delivering a specific service or product and when two businesses merge. Furthermore, the increasing digitalization and automation of workflows emphasize the need for process mapping. By “workflows,” we refer to all activities within a company, from input to output.

One solution can be to establish a standardized approach to executing workflows.

Tools for Strategic and Operational Process Mapping

Caranda specializes in mapping and optimizing workflows and value chains. We employ reputable tools such as Lean, RIS, and Prince2 to identify areas where your organization can further develop and streamline workflows. We do this in close collaboration with you, our valued client.

Our consultants combine theoretical frameworks with a pragmatic approach that aligns with your reality. Process mapping can be used as part of the journey of change and organizational development, both at the operational and strategic levels.

Process mapping can be used as part of the journey of change and organizational development, both at the operational and strategic levels.

Interdisciplinary Expertise Enhances the Mapping Process

Together with you, our client, we define desired objectives and create flowcharts of optimal standard processes. We have experts in law, engineering, economics, and social sciences who can delve into different levels of your organization to map current processes and then devise realistic plans for establishing and implementing new ways of working. Naturally, these plans will be well-founded and communicated by management beforehand.

In such projects, challenges and resistance to change may arise. Our consultants are well-trained to recognize and address such challenges.

Get a quick overview of your organization’s expenses. Only when you have full control over the status can you achieve lasting cost reductions, identify bottlenecks, improve processes, and implement relevant KPIs.

By conducting a cost analysis, you gain insights into your organization’s overall cost landscape and the ability to implement effective measures. This way, your company can increase its margins or get more value out of its budgets.

Streamlining operations frees up resources and time, allowing your organization to focus more on core activities and the primary tasks of various functions.

The cost analysis provides a clear picture of what products and services you purchase from which suppliers and also reveals whether your organization remains loyal to existing agreements. Many organizations work with numerous suppliers and can achieve significant savings by consolidating their purchases.

This will reduce the time spent on invoice handling and supplier management and enhance your negotiation position when entering or renegotiating framework agreements due to larger purchase volumes.

The cost analysis will also show how expenses are distributed throughout the year, which employees or departments conduct the purchases, and whether your invoices are paid on time. With a robust, quantitative analysis as a foundation, you can review and adapt internal procedures, enabling your organization to work more efficiently, achieve lasting savings, and set more accurate budgets and forecasts.

Caranda provides a comprehensive cost analysis, identifying areas for cost savings and efficiency improvements in line with best practices. By focusing on both low-hanging fruit and more substantial measures, a cost analysis gives you a solid foundation for lasting cost reductions.

Entering into good agreements is of little use if you fail to follow up on contracts and suppliers. After the agreement is signed, the last and most crucial phase of procurement begins: contract management.

It is in the management of the contract itself that value is created, and it is at this stage that the company should reap the benefits prepared through good groundwork and sound procurement processes. Moreover, increasingly stringent regulations demand how both public and private organizations monitor their suppliers.

Caranda assesses risks, develops plans, and establishes processes to monitor contracted agreements and suppliers. We provide support in both random spot checks and targeted supplier audits.

We assist our clients in monitoring supplier performance, the commercial terms, and other contractual requirements, such as labor and employment conditions, environmental standards, and human rights obligations within the value chain. If needed, Caranda Legal handles any disputes with suppliers.

Buying, merging, and selling companies are natural parts of the business world. A thorough due diligence can provide your company with a solid foundation for making the right decisions.

A change of ownership often entails consequences that both the seller and the buyer may not have fully considered. Therefore, a comprehensive review of the company should be conducted to varying degrees.

Due diligence is a structured examination of the commercial, financial, and legal aspects of the specific agreement. Such analysis should also encompass the contract portfolio and procurement while addressing technical, organizational, and environmental aspects if applicable.

Due diligence can uncover potential hidden factors that reduce value and thus limit the risk of negative surprises after the transfer. A well-prepared process will contribute to better agreements and reduce potential disruptions in the companies’ daily operations.

A well-prepared process contributes to better agreements and reduces potential disruptions in the companies’ daily operations.

Would you like to learn more about what Caranda is involved in? Subscribe to our newsletter!

Extensive experience in Due Diligence

Caranda can assist your company with comprehensive and tailored analyses to uncover areas associated with risk, providing insights and negotiation strength. We also possess the legal, business, organizational, strategic, and operational experience crucial in any due diligence process.

We also offer core competence in the form of in-house competence programs and courses, adapting our assistance to the goals and needs of your company.