A strong procurement and supplier strategy helps you find partners and subcontractors that effectively enhance your services and products. The result is lower costs and higher quality.

Caranda provides strategic support to achieve this, including the development of procurement and supplier strategies, conducting analyses, implementing category management, designing and implementing competency programs, as well as offering support for transformation and change management. We possess in-depth expertise and experience within the sectors we operate in.

Purchasing Strategies Suppliers represent a significant portion, up to 90 percent, of a company’s costs and play a crucial role in innovation and competence development. Therefore, the demands placed on a company’s purchasing function are exceedingly high.

During major transformations, such as responses to disruptive competition from new players or increased focus on corporate social responsibility, competent suppliers become vital for success. As a result, the requirements for a company’s purchasing function are expected to continue increasing. Purchasing processes involve user departments and functional departments, in addition to the procurement team.

Updating the purchasing strategy holds great value in achieving more value-added procurement. This can only be achieved if all efforts align towards common goals. An overarching purchasing strategy serves as a vital communication tool for this purpose. Most leading companies with ambitious procurement objectives regularly update their purchasing strategies to address business strategic goals and priorities.

Caranda has assisted numerous leading national and international companies in developing comprehensive purchasing strategies and recommends the following approach:

  1. Engage in dialogue with top management to establish short-term and long-term procurement goals that directly align with the company’s overall strategy and priorities.
  2. Conduct a thorough analysis of the current situation, encompassing both quantitative and qualitative aspects.
  3. Develop an action plan that addresses the most critical gaps in performance and capabilities through changes and improvement initiatives. The action plan enables the timely and effective achievement of goals.

The purchasing strategy should include concrete measures to:

  • Enhance value creation through improved category management and supplier relationships.
  • Streamline and fully digitize procurement processes.
  • Develop competence and capacity within the procurement function according to the company’s evolving needs.

The strategy should also outline how implementation and goal attainment will be monitored using success and performance indicators.

Value Chain Development Effective methods for value chain development can contribute to increased cost efficiency and value creation while strengthening relationships with suppliers and customers.

The value chain encompasses all the stages involved in value creation, starting from the delivery of raw materials to the end product reaching the customer. This includes raw material extraction and processing, production and assembly of components into the finished product, logistics, storage, distribution, and sales.

The actors within the value chain are all the entities that influence value creation. This includes the company itself, suppliers, subcontractors, and customers. The distribution of roles and tasks among these actors can significantly impact overall cost efficiency and thus value creation. It is, therefore, crucial to organize the value chain in the most efficient way possible.

By looking at the entirety of the value chain, your company can continuously assess the implementation of new activities and processes for innovation that better meet customer needs and preferences. Anything that improves the final product for the customer and reduces the overall costs in the value chain becomes essential drivers of total value creation.

Methods for Value Chain Development Our experience shows that value creation increases when there is a focus on value chain development, and together with our customers, we realize significant potential related to this.

Caranda offers methods that provide you with the means to control and manage value chains while simultaneously enhancing your company’s ability to collaborate internally and externally. In addition to process, competence, and cost analysis, we assist in formulating strategies for contracts and categories to achieve holistic value chain development.

Caranda’s tailored processes for value chain development include:

  • Ensuring a well-functioning, efficient, and future-oriented value chain that meets future market needs, customer requirements, and operational needs in line with the division’s strategies.
  • Ensuring that business and functional requirements for system solutions (operations and customers) are developed in collaboration with Group IT.
  • Ensuring necessary development, standardization, and alignment of product criteria and production processes throughout the value chain.
  • Contributing to the development, quality assurance, and analysis of strategic/tactical initiatives and projects.
  • Establishing and developing effective tools and methods for problem-solving.
  • Establishing Category Management A strategic and structured approach to the procurement process through category management can be the differentiator between the best and the rest.
  • Increased demands for profitability, intensified competition, reduced customer loyalty, and the need for new and improved products are common challenges faced by most companies in today’s market. Effective collaboration with the best and most innovative suppliers in the market can be critical for businesses to achieve their strategic goals for sustainable growth and product development. Category-based purchasing is not only the best way to secure such benefits but also facilitates systematic learning and efficiency over time.
  • How to Succeed with Category Management? Through category management, the Procurement function becomes the best place for talent development in the organization. Caranda has observed that many companies attempting to establish category management fail to fully achieve their objectives, and some even give up. Caranda can help ensure a successful implementation – we know what it takes and how the implementation should be carried out. Through category management, the Procurement function becomes the best place for talent development in the organization.
  • We Adapt to Your Needs We have assisted numerous companies in implementing category management, and several of our experienced consultants have played key roles in developing and operating category management in leading organizations. Caranda’s role and involvement in the implementation project vary according to the customer’s preferences. We can act as advisors to their own implementation team, analyze and categorize spend and supplier markets, guide category teams and provide expertise, or take full responsibility for driving the project until successful implementation.
  • Establishing Category Management A strategic and structured approach to the procurement process through category management can be the differentiating factor between top-performing companies and the rest.
  • Increased demands for profitability, intensified competition, reduced customer loyalty, and the need for new and improved products are common challenges for most companies in today’s market. Efficient collaboration with the best and most innovative suppliers in the market can be critical for a company to achieve its strategic goals for sustainable growth and to develop new and improved products. Category-based procurement is not only the best way to secure such advantages but also for systematic learning and efficiency over time.
  • How to succeed with category management? Through category management, the procurement function becomes the prime arena for talent development within the company. Caranda observes that many companies that have attempted to establish category management have not fully achieved their objectives, and some even give up. Caranda can assist in ensuring a successful implementation – we know what is required and how the implementation should be conducted. Through category management, the procurement function becomes the prime arena for talent development within the company.
  • Caranda observes that many companies that have attempted to establish category management do not fully achieve their objectives.
  • We adapt to the customer’s needs We have assisted numerous companies in implementing category management, and several of our experienced consultants have played key roles in developing and operating category management in leading companies. Caranda’s role and involvement in the implementation project vary according to the customer’s preferences. We can act as advisors to their own implementation teams, analyze and categorize expenses and supplier markets, guide category teams, provide expertise, or even take full responsibility for driving the project to a successful implementation.
  • Profit Improvement In a world where retail is exposed to national and international price competition through online commerce, and digital disruptions are spreading across almost all value chains, the need for profit improvement is growing significantly.
  • Many companies are quick to implement cost-cutting measures within their organizations, which can be highly challenging when it is essential for those who remain to have the competence, motivation, and determination required to navigate through the crisis.
  • Companies that instead take action on their procurement processes can often achieve more substantial effects on the bottom line while simultaneously securing new and better solutions and more efficient collaboration with suppliers. Caranda’s experience shows that companies with low to medium maturity in procurement and contract management can reduce procurement costs by five to ten percent. For many, this represents the potential to increase EBITDA margins by 30 to 80 percent.
  • Caranda contributes to all phases and roles in a procurement improvement project.
  • Assessing the current situation Caranda contributes to all phases and roles in a procurement improvement project, depending on the client’s preferences. The work usually begins by mapping the current situation and identifying potential areas for cost reductions by examining existing processes, competencies, agreements, and purchasing patterns. Areas for cost reductions are then prioritized. Various measures can lead to gains, whether through renegotiation or improvement projects with current suppliers or through competitive outsourcing. Involving the finance function for measuring gains and understanding how the results impact the bottom line is crucial.
  • Expertise in Profit Improvement Caranda is the operational strategist that knows how to realize cost reductions and other gains through better procurement practices. What sets us apart from our competitors is that we are actually professional purchasers and negotiators, and we have extensive expertise in almost all procurement categories.

Organizational Development and Change Management In order to meet the demands of continuous evolution while ensuring stability, organizational development and change management play a crucial role for your business.

Change management involves guiding and leading a company or organization through necessary processes to adapt to new demands and requirements from the external environment. This encompasses everything from defining new strategies, evaluating resources and processes, to assisting the organization in anchoring and implementing the changes at all levels.

Caranda offers expertise and additional resources to support organizational changes, establish effective processes, and help achieve the goals set by the leadership. Internal and external change agents with the right expertise can collaborate to ensure continuous development and adaptation within the company.

Who needs organizational development and change management? Most businesses, whether in the private or public sector, require continuous organizational development and change management at various levels. This is driven by societal trends such as the digitization of processes and products, corporate social responsibility (CSR), the demand for sustainable and eco-friendly development, and an increased focus on quality and efficiency in core operations. Additionally, governmental policies, like Stortingsmelding 22 advocating smarter procurement, highlight the need for change management and organizational development in the public sector.

To ensure successful organizational development and change management, interdisciplinary expertise and experience are crucial.

Interdisciplinary expertise for effective change processes What are the critical success factors for achieving successful organizational development and change management? Each company is unique in terms of strategic focus, leadership style, results, and how they impact the organization as a whole.

Caranda has a deep understanding of the requirements for change management in organizational development. We have extensive experience working at strategic, tactical, and operational levels, both in private and public sector organizations.

To achieve successful organizational development and change management, interdisciplinary expertise and experience are essential for effective communication across all levels of the organization and contributing to various functional areas. Solid industry knowledge is a vital part of our core expertise and is the key to executing efficient change processes.

Enhancing Competence Having the right expertise, precisely where and when it’s needed, is arguably the most critical measure for achieving favorable outcomes in procurement and sourcing.

Juggling multiple stakeholders and details to ensure the right quality and price can be quite intricate. Training and competence development are pivotal and strategic tools for fostering growth, progress, and continuous improvement. Caranda possesses extensive expertise in offering tailored courses, coaching, and e-learning programs that contribute significantly to reaching your strategic objectives.

Tailored Competence Development Our courses may be open to all, such as the negotiation leadership course we organized with Bob Bordone from Stanford University. Alternatively, we can design bespoke competence programs that cater to the specific needs of your organization.

We have extensive experience in developing and executing such specialized programs for both private and public sectors. In the public sector, we have provided extensive training on practical usage and compliance with regulations governing public procurement. Similarly, in private and public sectors, we have successfully delivered diverse competence programs focused on category management and other strategic enhancements within procurement and sourcing functions.

Possessing the right expertise serves as a pivotal strategic tool.

Up-to-date Competence Caranda’s competence programs are founded on Caranda’s proprietary procurement wheel. This encapsulates our well-tested procurement methodology, refined over years of market experience, and rooted in the latest knowledge and insights within the procurement field.

To facilitate improved purchasing decisions, we have developed the E-learning program, “Innkjøpsskolen.” This modern digital learning concept makes it easy and cost-effective to equip your employees with shared and up-to-date procurement knowledge.

Innkjøpsskolen offers several advantages:

  • Professional and efficient training in the procurement process
  • Enhanced knowledge and skills that lead to improved procurement practices
  • Tools and templates that foster streamlined processes
  • A comprehensive reference guide for on-the-job support after training
  • Enhanced confidence and capability in leading procurement processes

Should you wish, Innkjøpsskolen can be tailored to align seamlessly with your company’s procurement processes.

Innkjøpsskolen serves as an online training center for both aspiring and seasoned purchasers. It consists of five video-based e-learning courses, thoughtfully embedded with quizzes, and culminates in a final certification test, granting participants the coveted Innkjøpssertifikat (Procurement Certificate). Innkjøpsskolen is fully compatible with all digital platforms, and it can be effectively combined with other training initiatives, ensuring a custom-fit competence development tailored precisely to your company’s unique needs.