An Equitable Commercial Model

At Procure4 our objective is to establish auditable and sustainable EBITDA growth for our clients, and of course for ourselves. We therefore tailor our remuneration model to meet the needs of our clients, while creating value to invest in our business and to reward our own great people.

Cost Base Reduction and the Gainshare Remuneration Model

While we’re happy to work on a time and materials basis, the vast majority of our clients expect us to “have skin in the game” and to work with a remuneration model where the majority of our income is directly related to the delivery of the financial targets that we collectively set during the Scoping Phase.

We charge a small but meaningful fixed fee for the Scoping Phase in order to cover the cost of our people and the value of the intellectual property delivered. At this stage clients can walk away with a detailed scoping report and choose to deliver the benefits through an alternative resource solution. However we’re pleased to say that over 95% choose to continue to work with us, delivering the targeted benefits together On-Time and In-Full.

The Delivery and Closure phases are normally remunerated on a Gainshare Model where Procure4 takes a fixed percentage of the audited financial benefits for the client over a fixed period of time. The Gainshare becomes payable once the client is enjoying the financial benefits on a category.  As such our clients are always in net benefit with Procure4 creating the funds to fuel growth, increase the bottom line and reward our people.

 

On Time and In-Full Delivery

This is not sales speak. Along with our desire to work with your people as One Team, our determination to deliver targeted benefits On-Time and In-Full underpins the whole ethos of Our Approach to programme management.

Our business continues to grow on the back of excellent testimonials and references from senior client stakeholders. We need to build that reputation for working as One Team delivering all commitments On-Time and In-Full.

  • On-Time makes sure that Procure4’s costs are managed, and the client can depend On-Timely cash-flow impact of financial benefits and delivery
  • In-Full ensures both parties have visibility on the scale of the benefits to be shared

 

Financial Rigour that CFOs can trust

Financial Rigour means forecasting savings accurately and ensuring that systems, tools, processes and disciplines are in place to lock-in the benefits. Procure4 focuses on both elements to guarantee Financial Rigour for our clients and for Procure4.

4 steps to success:

  1. Our team of accountants work with your Finance Team to make certain each category in scope has a robust and signed off ‘Baseline’ detailing net prices and forecast annual volume for every item within that category
  2. This baseline is utilised once the category Approach Strategy has been successfully delivered to audit the anticipated benefits that should flow through over the coming 2 years
  3. Our ‘End Packs’ highlight the changes that should be locked-in in terms of systems, tools, roles, processes and disciplines to ensure compliance is robust, a strong legacy is in place and the benefits will flow through as planned
  4. Only then will the Procure4 resources withdraw, confident that targets have been delivered On-Time and In-Full and that the client has the confidence and capabilities in place for ongoing continuous improvement across the categories in scope



As a CFO I have learned the hard way of the need for rigour in the forecasting and locking in of numbers from supply chain or procurement re-engineering projects. I’m therefore proud of the number of CFOs from our client businesses that are happy to provide strong references for the work of Procure4 and in particular the robustness of the financial impact of that work…….it makes all the hard work of my team worthwhile!

Tony Atkinson, CFO Procure4

You will be surprised at how quickly we can create real value for your organisation through People Powered Procurement. Click here to contact us today.