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CASE STUDIES

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Opportunities & cost optimisation - healthcare client

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Procurement & development support - agriculture client

August Consulting helped healthcare client save more than $12 million within the first year

August Consulting helped one of its healthcare clients optimise its procurement opportunities and expenditure, delivering more than $12 million in benefits within the first year.

The company, which had been acquired by a private equity firm, is a major healthcare provider with multiple large sites across Australia.

 

They required a comprehensive review of their enterprise-wide procurement activities and a detailed program to deliver new and significant ongoing benefits across all clinical and non-clinical spend.

The program was to be consultant-led but executed in partnership with our client’s team.

As part of our opportunities & cost optimisation service line, August Consulting provided a range of services to the client. The scope of work included:

  • A detailed review of procurement spend and activities

  • Developing a pipeline of activities and estimation of their benefits

  • Assessing the team’s capability and capacity for ‘business as usual’

  • Allocating the team and a consultant-supplied resource to the defined program of work

  • Establishing a governance structure and internal stakeholder engagement forums to facilitate a clinical assessment of new procurement initiatives

  • Executing these initiatives through both existing and consultant-supplied procurement tools and processes

 

Our solution

August Consulting implemented a program of work to deliver quantifiable and auditable, year-on-year procurement benefits, and a tool to track the work and its delivery of those benefits.

This included more than 50 initiatives, ranging from negotiations with incumbents through to large-scale, go-to-market exercises across all spend areas, including clinical consumables, prosthetics, pharmaceuticals, energy, labour hire and site maintenance.

 

To explore how we can help you, please contact our team.

August Consulting’s mapping and analysis helps agriculture client save more than $3 million in 3 years

 

August Consulting helped one of its agriculture clients refine and remap its procurement strategy to help it save more than $3 million over three years.

 

The company, one of Australia’s most well-established agribusiness companies, engaged August Consulting to improve its ability to manage its third-party spend, and to design a procurement operating model to support its business in the short and long-term.

 

As part of its procurement capability and development support service line, August Consulting provided a range of services to the client. The scope of work included:

  • Mapping the business’ current state and understanding its strategic goals

  • Providing data aggregation, analysis, categorisation and visualisation

  • Reviewing various operating models, from centralised, decentralised, centre-led or a hybrid model in line with business requirements

  • Consulting within the business, including running workshops with key stakeholders

  • Reviewing practices to determine potential opportunities

 

Our solution

To address these challenges, August Consulting developed a proposed operating model, including proposed organisation and future role design. We also identified several key enablers and business improvement opportunities on which to build the foundation to ensure sustainable benefits over time.

We then developed a proposed implementation plan and roadmap for the client’s preferred option, and a three-year capability roadmap across the procurement function to develop the skills required to move from a tactical to a more strategic procurement function.

 

Having undertaken a cost-benefit analysis, through detailed review, consultation and prioritisation, August Consulting developed a targeted procurement enablement program and associated operating model that would save more than $3 million across three years between all spend areas.

To explore how we can help you, please contact our team.

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Supply chain diagnostics & improvements - healthcare client

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Strategic sourcing & market engagement - oil & gas client

August Consulting overhauls healthcare organisation’s supply chain operating model to enable efficiencies, streamlining & continuous improvement

 

August Consulting improved the supply chain operating model for one of its healthcare clients, creating efficiencies, consolidating functions and enabling continuous improvement.

 

The client wanted an optimal solution for its medical/surgical supply chain that complied with AS4187 standards.

 

They engaged August Consulting to implement the selected option and other supply chain improvement recommendations from an initial warehousing and inventory management model review.

 

Delivered as part of its supply chain diagnostics & improvements service line, August Consulting led and project managed the implementation of these recommendations across two main metro hospitals, engaging with key stakeholders including clinical, supply and IT staff.

This included:

  • Mapping the current supply chain

  • Evaluating warehousing and logistics options (consolidation, centralisation and outsourcing) from both an economic and organisational change standpoint to determine the best solution

  • Identifying & implementing several process, technology and people-based improvements across the medical/surgical supply chains, including inventory management policies

  • Delivering & operationalising the solution

 

Our solution

The multiple outcomes of this project included:

  • Improving efficiency of key processes and systems

  • Consolidating the supply function across two hospitals

  • Redesigning the infrastructure, systems and processes to support a new metro supply warehouse

  • Enabling continuous improvement of the supply function, including creating new roles and cross-hospital functions

  • Updating the stocking policy, goods receipting policy, and standardising purchasing and warehouse processes

  • Consolidating stock lines across the organisation, and reducing the working capital at the warehouse by $300k

To explore how we can help you, please contact our team.

 

August Consulting provided strategic procurement advice & implementation for its client’s complex, multi-package oil & gas project

 

August Consulting provided strategic procurement advice and implementation for one of its oil & gas clients, to help them deliver a large, complex refinery project.

 

The company, a global leader in integrated energy solutions, designs, builds and maintains energy assets.

August Consulting helped them deliver the project, with several procurement packages, guiding them through a competitive tender process, across a range of design, manufacture and supply requirements for a new refinery.

 

Delivered within its strategic sourcing & market engagement service line, August Consulting supported the company through the whole procurement process, including:

  • Preparing RFP/RFQ packages, incorporating both engineering and commercial requirements

  • Issuing the RFP/RFQ packages to the vendors and bid collections on time

  • Responding to pre- and post-submission clarifications

  • Formulating the commercial bid evaluation and recommendation to estimate, to shortlist & negotiate, and for award

  • Providing negotiation support

 

Our solution

August Consulting improved the company’s commercial outcomes by ensuring competitive tension was maintained throughout the procurement process, including best and final negotiations with shortlisted suppliers. This included helping them define clear objectives and associated negotiation plans.

 

We also facilitated the strong execution of projects, ensuring they each had appropriate governance, stakeholder engagement, project plans, risk registers and regular reporting to be delivered within agreed timeframes.

To explore how we can help you, please contact our team.

 

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