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Procurement Function diagnostic

Procurement is too often associated only with its operational tasks only - focused on placing orders and managing contracts and suppliers. But when optimised, it becomes a strategic function that drives efficiency, cost savings, risk management and long-term business success.

Altesia’s Procurement Function Diagnostic provides a data-driven, structured approach to assess your procurement operations. We identify sustainable improvement and savings opportunities—without relying on short-term cost-cutting strategies that lead to long-term risks.

We work closely with your CFO, CPO, and procurement teams to understand your current situation (as-is) and your ideal procurement setup (To-Be state), perform a gap analysis, and develop an action plan supported by a business case to economically justify its implementation.

The ultimate objective of our diagnostic is to elevate the maturity and impact of your procurement function.

Your procurement function challenges

Limited visibility on procurement performance

Inefficient processes & systems

Untapped savings potential

Resource constraints & capability gaps

Understanding where and how money is spent is critical to optimizing procurement strategies.

Bottlenecks, outdated workflows, and ineffective IT tools reduce procurement efficiency.

Procurement can be a major source of savings. This requires identifying savings opportunities that can be sustainable on the long-term.

Lack of internal resources and skill gaps can hinder procurement transformation.

How we help you

We take a holistic and data-driven approach to diagnosing and optimizing your procurement function, ensuring that improvements are both strategic and actionable. This analysis is made at different levels:

Strategy and sustainability
Spend data
Organisation
Process & systems

Our work goes beyond analyzing spend data and reviewing contracts—we engage directly with your teams and suppliers to understand the real challenges, constraints, and opportunities.

Every recommendation we make is backed by data, ensuring that proposed actions are not only realistic but also come with quantified savings potential.

Our methodology

Diagnostic - understanding the current state ("As is")

We start with a full analysis to assess your procurement processes, organization, tools, and maturity level - including your ESG and CSR commitments
A spend analysis breaks down procurement data by category, supplier, and business unit to identify inefficiencies and areas for optimization.

Defining the ideal state ("To-be")

Through workshops with key internal stakeholders, we define your ideal procurement function—aligned with your strategic priorities, operational needs, and available resources.
This step allows us to perform a gap analysis, pinpointing where the largest improvements can be made.

Supplier interviews

In parallel to this internal analysis work, we conduct supplier interviews under a formal mandate to benchmark pricing, challenge cost structures, and assess market alternatives.
ESG factors are integrated into supplier assessments, evaluating carbon footprint, ethical labor practices, and responsible sourcing.
This provides external validation of procurement opportunities and helps refine potential negotiation strategies.

Business case development

With a full understanding of both internal and external dynamics, we quantify savings potential and define the best strategies through three key analyses:

Cleansheet analysis – Optimizes costs within the existing framework by enhancing a.o. price negotiations or supplier efficiencies.
Levers Assessment – Challenges the status quo to find savings through a.o. specification changes or packaging optimizations.
Qualitative assessment – Evaluates qualitative criteria such as sustainability or processes & systems maturity levels and opportunities for evolution.

The result

After our audit of your procurement department and function, you will get:

A spend map, with analysis of main suppliers, categories, contract coverage, etc.
An analysis of your procurement department's maturity level (service and processes)
A review of your current human resources challenges and limitations
An action plan, with quick wins and possibile strategies, by priority
A business case to economically justify the implementation of the recommended actions, including:
- Potential savings - within the existing procurement framework
- Levers assessments, exploring alternative and creative ways to deliver savings

What we don't do

❌ Recommend short-term cost-killing strategies that create long-term structural issues.
❌ Rely solely on client input and—we limit your time investment to the minimum and work as independently as possible to minimize disruption to your teams.