Steven Bowen, Chairman & CEO“For every dollar saved in procurement and reinvested into the organization, $3 to $10 dollars of revenue is required to provide the same profit effect,” according to Maine Pointe’s Steven Bowen and Rex Clothier. That’s a compelling metric for companies considering efficiencies in their procurement, operations and logistics, where Maine Pointe’s Total Value Optimization™ (TVO) approach is known for driving EBITDA, cash, and service improvements. Unlike more generalist consulting firms, Maine Pointe specializes in breaking down functional silos and driving measurable value, not only in procurement, but also across logistics and operations, to deliver accelerated performance improvements across the supply chain.
Breaking through Functional Silos is Critical to Driving Value
Over the past 12 years, Maine Pointe’s unique TVO approach has delivered over $1 billion in measurable benefits to clients in 25+ countries. Steve Bowen says, “TVO is achieved by focusing on the whole supply chain and associated value streams throughout the organization, not just the buyers.” The cross-functional alignment approach identifies synergistic savings and added value benefits that Maine Pointe’s methodology can deliver. Focusing holistically on the critical interdependencies of procurement, logistics, operations, and planning functions, TVO aligns and integrates people, processes, and technology across traditional functional silos to deliver the best value to customers at the lowest cost to an organization.
Data Analytics is Critical to Driving Actionable Results
“In today’s business environment, Enterprise Resource Planning (ERP) systems dominate the landscape of business technology. ERPs tend to be heavily financially driven and often don’t provide all the tools needed for successful procurement management,” says Rex Clothier. “Maine Pointe uses its advanced data analytics capabilities to help clients gain insight into spend,” he added.
Rex Clothier, EVP-Strategic Procurement“We analyzed over $3 billion worth of spend data across multiple ERP sources for one client. This helped executives get an aggregated view of spend data across all departments, uncovering significant spend reduction opportunities.”
A Pragmatic Approach is Needed to Drive Accelerated Value
When asked how best to drive value, Steve Bowen says, “The process starts with understanding the client’s strategies and priorities. It’s our job to identify and quantify the real opportunity, articulate areas for value creation and identify constraints, risks and barriers. We then create a robust, measurable business case with a clear ROI.”
Maine Pointe’s results-driven approach appears less disruptive compared to the intrusive ‘big-bang’ corporate transformation programs of the past. “Using experienced consultants and hands-on implementation experts, we make it a priority to align client leadership and operational teams behind the strategic imperatives and transformation agenda of the business. This is critical to driving sustainable change,” explains Rex Clothier.
When it comes to achieving optimization, Steve Bowen believes that procurement organizations need to move rapidly up the ‘TVO Procurement Maturity Curve’, away from traditional price-based methodology, toward a new model where optimized procurement becomes a sustainable strategic asset. “As we help clients move up the Procurement Maturity Curve, the critical interdependencies of their procurement, logistics, and operations functions must come together to drive synergy savings and value-added service such as improved throughput for their business.”
Maine Pointe has a track record of delivering measurable value to clients and the confidence to ‘put its money where its mouth is’ by underpinning each engagement with a unique ROI guarantee.