Purchasing Services

In addition to the services listed below, Hermetica has a number tools to support these. Please see the Tools section.


Interim Purchasing Management

Hermetica has routinely helped large companies and, in some cases whole sectors, save money whilst securing the supply base. Improvements of 5% to 20% on targetted spend are routinely delivered. Hermetica has acted in the capacity of a traditional head of purchasing, responsible for developing strategy, implementing transactional systems, managing compliance and negotiating with suppliers in both private and public sectors. Hermetica's main strengths lie in technically challenging areas, such as IT and engineering, which are heavily dependent on cross-functional collaboration for a successful outcome.


Cross-Functional Category Management (Overall and Specific)

Modern day purchasing has been heavily influenced by practices which have evolved out of the automotive sector where grouping similar items into "categories" has been a common practice for many years. Hermetica has applied this approach across a wide range of goods and services spend: IT, print, health products, social care services, manufacturing components, to name just a few. Whilst many organisations claim to apply this approach, our experience is that many do this only partially and often as an add-on to the "day job". By applying more rigour, combined with a project management based approach, better results can be obtained.


Supply Chain Management

Hermetica recognises that the "buy" element is just part of the broader supply chain process and that it is essential the whole chain be considered to achieve sustainable benefit. Hermetica's experience is that "price" based negotiations only work when the buyer has all the power in the relationship - most often not the case. Hermetica therefore focusses on cross-functional collaboration to eliminate the "7 wastes" within the whole supply chain - sometimes in collaboration with the supplier. Hermetica has worked with whole sectors (e.g. social care and oil & gas) as well as individual companies to identify and implement overall SCM improvements.


"Make or Buy" Analysis and Outsourcing

Hermetica believes firmly in the fundamental principle to "never outsource a problem" if subsequent disputes are to be avoided. This requires that in-house costs be optimised first. "Retained costs" typically account for 10% of in-house costs. One-off project costs associated with outsourcing add at least another 10%. It is often difficult to isolate and realise savings in allocated overheads. TUPE considerations usually mean unit labour costs remain constant post transfer. Service level agreements and performance monitoring are required to maintain expectations. Whether it be outsourcing parts or services, Hermetica has the experience to guide you.


Purchasing Reorganisation, Systems and Processes

It is usual, and healthy, for organisations to occasionally reorganise purchasing. Cycles of centralisation, delegation and matrix collaboration are the norm within most larger organisations. When combined with acquisitions and mergers, systems, procedures and data usually end up becoming fragmented. Hermetica has helped numerous organisations establish, or re-establish, matrix and central purchasing. Hermetica has in-depth experience of implementing structured processes and governance under such situations as well as consolidating, analysing and reporting on the vast amounts of purchasing information often involved.