By Chris Löwer, Berlin One thing is clear for Thorsten Makowski: "The classic purchasing consultant is a thing of the past." Yet, as the director of Valueneer – the Berlin-based consultancy specializing in purchasing – he still sees his trade on the up and up. But mere rebate battles would no longer be enough for consultants to provide their clients with genuine surplus value. "Also in demand are strategic skills, sound knowledge of the market and especially competence in implementation", he specifies. It's fitting that industrial companies increasingly demand results-oriented remunerations. This is gathered from a recent study by Valueneer which interviewed, across industrial sectors, nearly 800 executives in industry and commerce worldwide.
Every second major group calls for help
What should be a pleasure for purchasing consultants: They are very welcome. Half of all interviewed companies had no reservations regarding consultants – At least every third company intends to get external help within the next two years. Even half of the major companies have such plans. They slowly come to the realization that their buyers' day-to-day business is taking up so much of their time that there is no time left for strategic planning. Makowski: "Companies see the need for improvements in demand planning, purchasing controlling, and contract negotiations." Another important field is the search for new suppliers – especially small and medium-sized companies have a hard time with international invitations to tender. According to the study, old-school buyers usually cannot cope with it and should leave negotiations up to consultants. Thus, specialists must know both worlds well – the operative and the strategic – and be able to take matters in hand themselves.
A trend also seen by Christian Rast, head of the purchasing consultancy Brainnet: "Clients demand experts who are able to make supply chains flexible." That would also be a direct result of the economic crisis which made it clear that economic cycles are becoming "shorter and more radical". In demand are knowledgeable industry observers and strategists who are able to anticipate early on how procurement markets will change – from the auto industry all the way to financial service providers. "What's important is to first make supply chains transparent to then make them so flexible in design that purchases can be rapidly adjusted to economic developments", explains Rast.
Thus, it's not surprising that, in addition to their day-to-day business, even the purchasing consultants from Kerkhoff Consulting increasingly prepare market studies, especially of international markets such as South America or Asia. "However, purchasing consultants must not only prepare studies – they must also implement the analysis results jointly with their clients", says Gerd Kerkhoff, founder and managing director. "In demand is what will directly contribute to a company's success." That's what Brainnet boss Rast also says: Clients expect fast results which are to materialize within months.
Direct way to more liquidity
The economic crisis cranked up the business for purchasing consultants: While in the past year, liquidity had to be frequently created within a few weeks due to the renegotiation of supplier contracts, this trend is continuing unbroken since companies would now need cash to finance their growth. "Purchasing is the most valuable cost leverage because there is no other way to realize savings faster", says Kerkhoff. According to him, in 2009, his company increased turnover by nearly 20 percent in Germany. Brainnet boss Rast indicates the same figure for his company. He also expects 20 percent plus for 2010. Kerkhoff not only considers purchasing consultants as "more in demand than ever" but also as a very likeable lot. His reason: "They will never tackle savings in the workforce area but, instead, bring in money through renegotiations with suppliers." |
