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In simple words, we can consider the Material Group Strategy as the best way to get from where we are… let’s call it point A, to where we want to be… let’s call it point B.

The definition of the MGS is a very important step in procurement, creating an action plan to generate competition, to improve supplier’s performance and to optimize benefits accordingly.

But the most important step is the one before all of this; to know exactly where we are and where to be. In other words: to figure out points A and B.

A systematic approach to bringing transparency to our material group is the key factor to success. Elements such as material categorizes, supplier evaluation, market analysis, pricing structure, capacity check, project pipeline and risk management, need to be monitored, analyzed and deeply understood before taking any further steps.

With this transparency we can figure out what works, what has the potential to improve and what must improve ASAP, as well as define proper targets, priorities and essential resources.

Once A and B are identified, you will realize how easy it is to improve the situation, and that the best way to get from A to B is right in front of you… your Material Group Strategy.

What is the key to managing this? Exceptional professionals with an analytical approach, strict discipline, a strategic mind set, expert abilities in cost transparency and a deep understanding of the market.

If you are interested in investing in an exceptional team and increasing your company’s profitability, we encourage you to consider our next training focused on improving strategic purchasing skills. Additionally, please feel free to contact us for more information.

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