4C Associates has the insight, technology and experience to drive rapid profit improvement.
We offer specialist consulting, technology and managed services to transform your costs. We apply industry and functional expertise to deliver exceptional benefits.
2. Our offer
4C Associates specialises in improving the profit margins and valuations of organisations.
Our business combines specialist Cost Transformation insight, expertise and cutting-edge
technology to consistently deliver tangible benefits to our clients.
4C is a cost transformation specialist. We combine
consultancy services, technology solutions and
procurement outsourcing to help clients reduce and
manage their costs.
We offer specialist consulting, technology and managed
services to transform the cost base of clients across
multiple sectors.
We apply industry and functional expertise to deliver
tangible benefits.
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3. About us
Experience Our Team Real Savings Delivering
Established 2000 65+ in-house £62.6 million saved Business wide cost
talented specialists for clients in 2011 transformation
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7. Our tools - procurement
Process &
Cost Analysis & Insight & Organisation Tracking &
Benchmarking Innovation Optimisation Monitoring
• Spend analysis by • Company profiles • Strategy analysis • Reporting
category, vendor, • Industry reports • Category planning • Databases
cost centre, etc.
• News archives • Balanced scorecard
• Dashboard
Reporting • Benchmark data • Performance metrics
• Value plan weighting • Specialist sector • Stakeholder
knowledge feedback
• ROI summary
• Specialist industry
knowledge
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8. Our tools – supply chain
Operational
Procurement Strategy Excellence Project & Risk
• Tendering, including • CAST – supply chain • Six Sigma / Lean • Project planning
e-tendering optimisation • Labour productivity • Communication
• Collaborative • CLASS – warehouse • Asset utilisation • Monitoring
sourcing layout & design
• Operational • Reporting
• Insight & innovation • Paragon – network processes • Change control
& transport
• Commercial &
optimisation • Financial
contract support • Post project review
management &
• Transition control • Risk identification
• Implementation • Operational • Mitigation
management & • Contingency
• Audit & review
control planning
• Business continuity
and disaster
recovery
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9. Functional expertise – Supply Chain & Logistics
Leading companies are using their supply chain and logistics capabilities to differentiate themselves
from their competitors in various ways; improved availability of products leads to increased sales,
lower inventories reduce working capital requirements and efficient logistics improves their
operating margins.
Our experts work with clients to
help them:
• Develop supply chain strategy - meeting business strategy and minimising supply
chain risk
• Model the supply chain - assess various models and cost options using CAST
• Design the logistics network to minimise costs using CAST and Paragon
• Optimise warehouse and fleet requirements and insource/outsource model
• Design and operate end to end tender processes including e-auctions
• Project manage major change projects
• Run Six Sigma operational process improvement projects, reducing variable costs
e.g. labour, vehicle costs, fuel and stock loss
• Improve financial and KPI reporting capabilities to drive management focus
• Support M&A activity
Some challenges we typically
find in this area include:
• Supply chains no longer delivering against new business requirements
• Fixed costs in the supply chain are too high
• Networks and assets not fully utilised, driving increased costs
• Third party suppliers not delivering against Service Level Agreement, resulting in
need for change
• Operational processes too manual leading to lack of visibility and high admin costs
• Poor financial understanding in operations - lack of cost / profit focus
• Low labour productivity 9
10. Functional expertise – CAPEX Procurement
Capital Expenditure (CAPEX) focuses on the procurement of property, factories, fleet or
equipment, or the development of an existing asset at a cost exceeding the minimum
capitalisation threshold. Within most organisations, CAPEX procurement sits between direct
and indirect procurement.
Our experts work with clients to
help them:
• Refine processes to support a more efficient MRO sourcing operation
• Deliver year-on-year savings through spend aggregation and demand management
• Work closely with distributors and manufacturers to introduce innovative practices
across the product base
• Consolidate supply chains
• Reduce inventory via stock optimization programmes and product standardisation
• Improve maintenance programmes with a focus on preventative maintenance
Some challenges we typically
find in this area include:
• Fragmented supply chains
• Vendor management at local levels
• Decentralised processes, ordering and inventory management
• Complications arising from the vast range of products and services involved and
unpredictably of demand
• Unplanned, reactive requirement of spare parts and services, which can encompass
up to 50 per cent of total MRO spend
• Disparate spend across multiple sub-categories and site locations
11. Functional expertise – HR & Resourcing
Pricing is a typically complex and non-transparent area within HR and resourcing. This is
true even in cases where detailed contracts are in place.
Our experts work with clients to
help them:
• Improve service, contractual and commercial agreements
• Ensure spend meets needs of HR community
• Manage processes and contracts from an overall perspective, rather than
fragmented throughout the business
• Deliver HR procurement function embedded with key stakeholders
Some challenges we typically
find in this area include:
• Areas within HR and resourcing are often fragmented, sometimes with no overall
ownership
• Sub-categories can have multiple stakeholders, many have emotional involvement
with the current arrangements
• These factors contribute to making this category an opportunity for significant
savings but also one where opportunities are difficult to accurately identify and
implement
• As a result, many organisations implement sub-optimal arrangements, which are
complicated to manage and maintain
12. Functional expertise – IT & Telecoms
IT and Telecoms are fast-moving areas in which category-specific procurement expertise
adds tremendous value
Our experts work with clients to
help them:
• Understand exactly where technology spend is going
• Buy only what they need to drive their business forward
• Identify areas where their spend can be better managed
• Exit safely and professionally from deals which do not meet their business needs
• Leverage our expertise to pay the right price
• Manage suppliers professionally and profitably
• Improve the overall effectiveness of their technology spend
Some challenges we typically
find in this area include:
• Aggregating spend with providers across the business
• Getting buy-in from various stakeholder groups
• Determining the true requirements vs. 'nice-to-haves' for technology
• Over or under licensing for software
• Understanding the true costs (particularly for managed services)
• Inflexible requirements driving inappropriate commercial deals
• On-going monitoring contracts both operationally and commercially
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13. Functional expertise – Marketing
Marketing is one of the largest areas of cost for many companies, however, it is also an area
where return on investment is particularly difficult to quantify.
Our experts work with clients to
help them:
• Identify ways of getting more from spend in areas such as media and advertising
• Rationalise agency rosters - set up the best agencies at the right price
• Benchmark rates to ensure client obtains best price for the work
• Manage pitch processes and guide the marketer regarding commercial aspects,
allowing them to concentrate on creative elements
• Implement most effective remuneration methodology in different sub categories
• Devise and manage incentive schemes - enable payment by results to function
efficiently
• Manage suppliers professionally and profitably
Some challenges we typically
find in this area include:
• Disparate spend across numerous sub-categories
• Various fee structures across sub-categories and agencies
• Difficulty engaging stakeholders
• Tasks / services provided not straightforward and difficult to specify
14. Functional expertise – Mergers & Acquisitions
M&A activity is often one of the fastest ways to impact cost and a catalyst for
transformation. The key element behind successful M&A activity is the creation of synergy
between both companies. When two businesses join forces numerous opportunities arise,
including more efficient use of resources, better economies of scale and increased market
presence. A well carried out operation can lead to growth and increased profit.
Our experts work with clients to
help them:
• Identify and shortlist targets
• Plan business strategy
• Negotiate and close deals
• Carry out commercial due diligence
• Achieve post-merger integration
• Successfully manage the M&A process
• Manage financial and legal due diligence
Some challenges we typically
find in this area include:
• Limited or late involvement from procurement resulting in unrealistic
objectives drawn up by senior management
• Communicating success stories to stakeholders
• Effectively integrating staff from both companies
• Consolidating suppliers
15. Functional expertise – MRO
Maintenance, repair, and operations (MRO) focuses on the procurement of engineering
spare parts and site services for manufacturing equipment and production areas.
Our experts work with clients to
help them:
• Refine processes to support more efficient MRO sourcing operation
• Deliver year-on-year savings through spend aggregation and demand management
• Work closely with distributors and manufacturers to introduce innovative practices
across the product base
• Consolidate supply chains
• Reduce inventory via stock optimization programmes and product standardisation
• Improve maintenance programmes with a focus on preventative maintenance
Some challenges we typically
find in this area include:
• Fragmented supply chains
• Vendor management at local levels
• Decentralisation of processes, ordering and inventory management
• Vast range of products and services involved and their unique unpredictably of
demand
• Unplanned, reactive requirement of spare parts and services can be as much as 50%
of total MRO spends.
• Disparate spend across multiple sub-categories and site locations
• Uncommon part numbering systems leading duplication of stockholding
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16. Functional expertise – Office Services
Well-managed office services enable a business to operate efficiently and effectively, and
can positively impact on productivity and morale. To those outside the business, including
clients and potential employees, the quality of office services create the impression of the
professionalism, creativity and culture of the business.
Our experts work with clients to
help them:
• Define office service requirements
• Deliver year-on-year savings through demand management and consolidation of
goods and services
• Develop output specifications, service level agreements and standard operating
procedures
• Work with suppliers to develop cost reduction and service improvement strategies
Some challenges we typically
find in this area include:
• Finding the appropriate service levels to deal with the varying age, condition and
layout of physical infrastructure,
• Vendor management at local levels and/or a lack of clear specifications of required
goods and services
17. Functional expertise – Professional Services
Professional services procurement is rarely about getting the lowest price. Most users - who
are typically senior business leaders - would consider paying more for better performance.
Crucially, therefore, procurement cannot decide which supplier is offering the best value,
and fails when it tries to do so.
Our experts work with clients to
help them:
• Understand what deliverables to buy and how to best specify these to suppliers
• Define bid evaluation criteria - ensure the quality of the proposal is effectively
measured
• Consider suppliers who may not have been considered before
• Put in place and negotiate rate-cards with Key Suppliers
• Run swift competitive exercises for live assignments
• Implement internal Demand Challenge processes
Some challenges we typically
find in this area include:
• Balancing service fulfilment, risk mitigation, lead times and cost avoidance with
pricing
• Refining service specifications and translating them into outcome-based pricing
• Ensuring expertise required is in line with expertise provided
• Improving processes and policies that impact costs
• Ensuring on-going measurement and feedback of provider
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18. Functional expertise – Property & Facilities
Property and facilities service specifications are complex, and the costs of services are often
not well defined or understood.
Our experts work with clients to
help them:
• Understand latest market trends and approaches
• Identify areas where spend can be better managed
• Leverage our expertise to ensure market competitiveness
• Professionally transition agreements managing legislative constraints such as TUPE
• Develop service level requirements and continuous improvement
• Manage suppliers professionally and profitably
• Improve overall effectiveness of processes and latest technology
Some challenges we typically
find in this area include:
• Contracts are often difficult to administer
• SLAs are often not well defined or easy to monitor
• 'Hidden' spend on non-core work significantly increases total spend
• Operational managers lack purchasing support to assist with structuring competitive
processes - ultimately true costs are not well understood
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19. Functional expertise – Travel
Travel is a diverse category which tends to generate an emotional response from large
numbers of individual users.
Our experts work with clients to
help them:
• Understand exactly where the travel spend is going
• Monitor and optimise travel supplier agreements in line with demand profile
• Review and benchmark travel policies - identify areas where spend can be better
managed
• Exit safely and professionally from deals which do not meet their business needs
• Leverage our expertise to pay the right price for the right service
• Manage suppliers professionally and profitably
• Provide insightful travel spend reporting to empower travel decision making
Some challenges we typically
find in this area include:
• Travel is an emotive category - direct effect on how an employee sees themselves
valued by the company
• Purchasing control is over a vast number of individuals
• Travel brings together a combination of multiple categories
• Environmental considerations often have to be taken into account
• Travel is an international category with all the additional complexities this adds
• Travel is a data intensive area and analysis can be very complex
• Policy compliance is a fine balance which if done poorly can result in massive
overspend and alienation of the workforce
20. Case study
More than £20 million annual savings delivered
Objectives Approach & Outcomes
• To work closely with AstraZeneca • Exceeded substantial savings targets on
purchasing teams to identify, quantify each of the category-specific savings
and plan specific category procurement delivery projects
improvement projects – focusing on
• Developed and introduced new ways of
achieving rapid and sustainable cost
working, implemented new purchasing
reduction
processes, category knowledge bases and
• To achieve substantial savings by supporting tools to ensure savings are
providing specialist category expertise, ‘locked in’ for future years
sourcing methodologies and tools,
• Managed AZ procurement training
research, benchmarks and market
programme to improve core skills
information, cost analysis and
modelling capabilities, process change • 4C’s project work with AZ won the CIPS
and change management expertise ‘Procurement Excellence’ award in
2007
• To transfer knowledge and skills back to
the AZ purchasing teams • Reduced annual cost base by more than
£20 million across Europe and the UK
21. Case study
Annual savings of over £20 million delivered across Europe
Objectives Approach & Outcomes
• To manage £350m of spend and drive • A 4C ‘quick-wins’ team achieved £500k of
cost reduction through strategic sourcing negotiated savings within the first two
and demand management months
• To drive significant improvements in • Category management teams were
Procurement’s engagement with key established and aligned to key spend
business stakeholders categories (e.g. Logistics, Property &
Facilities Management, HR and
• To drive compliance to preferred
Professional Services)
contracts in order to maximise realisation
of negotiated savings to the bottom line • 4C implemented a Procurement
Helpdesk dedicated to driving
• To provide a flexible resource model for
engagement with stakeholders across O2
O2 to achieve rapid deployment of niche
and compliance to procurement processes
procurement expertise for projects as
and policies.
required
• In excess of £20m annual savings
delivered
22. Case study
Multi-million pound annual savings across five continents
Objectives Approach & Outcomes
• To conduct a comprehensive diagnostic • 4C deployed a core team that was
review of BG Group’s indirect spend, supplemented by category experts as
including spend analysis, interviews, required through the projects
process reviews and benchmarking to
• 4C-led sourcing projects covering a wide
identify and quantify savings opportunities
range of categories. These included:
• To deliver substantial savings to the global facilities, marketing, legal, professional
business services, HR services, recruiting,
temporary labour and contractors, training
• To improve the speed and
and IT
quality of service delivered
by Procurement to the business • Multi-million pound annual savings
objective achieved. The success of the
approach led the BG Group to re-evaluate
their procurement approach, electing to
outsource all indirect category
procurement to 4C
• 4C and BG have worked closely together
since 2002
23. Case study
Multi-million pound annual savings delivered
Objectives Approach & Outcomes
• To collect and analyse data and to identify • A flexible resource model was used to
the changes required to implement the deliver a persuasive ROI for Catlin. This
various savings programmes. This involved 4C flexing specialist resources
process involved pulling together a large from a pool of experts in accordance with
amount of information into a useable Catlin’s needs.
database and helping to introduce a
• Strong senior stakeholder engagement
procurement function into the existing
across the categories managed through
corporate structure.
highly credible category experts.
• To identify key suppliers, contracts and
• Significant annual savings across Audio
categories for negotiation, as well as
Conferencing and Mobile Telecoms.
areas where value could be added and
risks eliminated. • 13% annual saving achieved in HR
spend including Management Training,
Interim Agencies, Temp & Perm
Recruitment Agencies and Reference
Checking.
• 16% annual savings in the FM category
including Catering, Postage, M&E
Consultancy and Office Move Project
Management.
24. Case study
Savings of more than £15m delivered
Objectives Approach & Outcomes
• To optimise B&Q's indirect purchasing • The procurement team delivered annual
model. When the project was initiated, savings in excess of £15m, and a host of
B&Q's indirect purchasing model was other benefits including:
"decentralised and fragmented' and
• Dramatic increase in compliance to
needed to be changed in order to ensure
preferred/approved suppliers
its potential was fully leveraged.
• Indirect spend dashboards, communicating
• To review all elements of the cost base to
directly to the board and providing a summary of
underpin the core value proposition and
how B&Q invests its £1.18bn of indirect spend
deliver commercial agility, value for
money and spend control. • Internal procurement portal and other tools
• To raise the profile of Procurement within • A ubiquitous end-to-end purchasing process
B&Q. from 'Create a Category Strategy' through to
'Managing the Vendor‘
• Dramatically improved procurement
credibility
• The new Procurement function was awarded the
CIPS Award for 'Most Improved
Procurement Operation'.
25. Commercials – risk / reward options
We link our fees to performance and delivery
High Risk /
Reward
• Up to 40% of fees at risk
• Up to 40% performance
Medium Risk / bonus
Reward
• Up to 20% of fees at risk
• Up to 20% performance
Fixed Fees bonus
• Discounted fixed fee charged
• Fixed fee based on during project
expected workload and 4C • Fee adjustment paid (if any)
resource costs once project completed and
• 4C resources dependent savings have been signed off
on spend and categories
being reviewed
26. Testimonials
Barry Mellor
Ian Goldsmith Edward Fuchs Category Manager -
Chief Operating Officer Group Procurement Director Marketing and Sales
Brakes United Biscuits O2
"4C proved an invaluable "4C have been working with UB "We have been delighted with
resource for us and delivered since 2009 and have enabled a the support that 4C has given
high quality category planning, step change from procurement us in reviewing the marketing
analysis and project savings to delivering cost services category. The
management skills to the transformation. The team 4C knowledge and expertise has
Brakes team. 4C led from the put in place has over-delivered been clear from the start and
front, were enthusiastic and on all objectives and proved meant that they delivered
energetic and played a key role themselves to be constant beyond expectations in terms
in shedding light on an innovators; always looking for of supplier relationship
important part of our business. processes to optimise or management, relationship
I would not hesitate to leading edge technology to management between
recommend 4C." deploy. We are extremely marketing and procurement,
pleased with the results increasing service levels whilst
achieved and I wouldn't reducing costs and ultimately
hesitate to recommend them." bringing savings to the bottom
line."
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27. Testimonials
Paul Jardine Roger Gonourie James Hussey
Group Chief Operating Former Head of Procurement MD Currency Division
Officer Catlin Group Limited B&Q De La Rue
"4C helped us to identify "At B&Q, 4C worked as an "I'd like to thank the 4C team
multiple cost saving integrated team with GNFR. for the on-going support you
opportunities in our indirect The work that we did together are providing us with in
spend by working with us in won the CIPS prize for "Most meeting our business
gathering and analysing our improved purchasing operation challenges. In the past five
spend data. Using this - start up". We have been years I have not worked with a
information, 4C then delighted with their support procurement department that
implemented quick win, over the last three years". has been so structured and
medium term and long term professional. The tools and
saving programmes for Catlin. processes are giving us a new
We are very happy with their visibility of spend and data
input and will continue to work allowing us to collaborate and
with them on future cost look at horizontal opportunities
transformation projects." across the business."
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28. Testimonials
Paul Bird Nigel Herrington
Head of Supply Chain Head of Procurement Tim Pile
AB World Foods BG Group Sainsbury's Bank
"I chose 4C Associates as they "BG has an integrated "4C have done a great job for
presented a practical project procurement outsource us, showing true understanding
management style with great relationship with 4C of the myriad complexities
visual monitoring tools and Outsourced Procurement involved within this category of
personnel that would fit in with Services for Indirect goods and spend. I wouldn't hesitate to
the project team at AB World services that adds significant recommend them."
Foods. This proved to be a value to BG's business through
good decision, as 4C gave the delivery of high class
strong leadership of our cross people, processes and
functional team, regular techniques together with
encouragement toward complementary consulting
excellent performance and services, that has led them to
sound advice to achieve key being truly regarded as part of
milestone targets. I would the team."
have no hesitation in using 4C
for future project support."
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