We believe in the consistent application of the Strategic Sourcing methodology as a rigorous and collaborative approach, with decision-making processes based on facts derived from market analysis and intelligence.
At Level Group, we understand that a company's success is directly linked to the efficiency of its supply chain. Our goal is to identify and select the best partners for long-term strategic relationships, ensuring significant gains in purchasing price reduction and improvements in quality and service levels for the end customer.
With Level Group, your procurement function will be aligned with long-term objectives, fostering an environment conducive to favorable and competitive negotiations.
Assessment of current commercial conditions, suppliers, and contracting models, identifying and selecting the best partners.
Study of the category's supplier market using SWOT, Porter, and other tools to identify opportunities.
Development of contracting scenarios aimed at exploring possibilities to optimize operating models and, consequently, costs.
Management of the competitive bidding process, analyzing technical and commercial proposals from the supplier market, as well as presenting the most efficient negotiation strategy.
Support in the negotiation process with the supplier market, which can also be conducted through e-sourcing tools.
Support in new operational and commercial models with follow-up on formalization. Assistance in drafting contracts and supplier qualification processes.
Contract Duration
- Multiple categories to be addressed and consolidated;
- Tight deadline for closing new contracts;
- Several stakeholders spread across Brazil, complicating project execution, with some LATAM workstreams.
- Allocation of a dedicated team for 8 months at Syngenta;
- Execution of sourcing categories according to the stipulated timeline;
- Several "Make or Buy" projects carried out during this process.
– New contracts negotiated and restructured (scope, KPIs, and SLAs);
– Average savings of 12% across the worked categories (Freight, Facilities, IT, Fleet – Make or Buy, HR contracts);
– Consolidation of several LATAM categories (LATAM contracts).
Contract Duration
- Contract unnegotiated for years;
- Suppliers applying contractual price adjustments;
- Technical/operational dependency on IT providers (lack of scope visibility).
- Project involving telecom, site support, and hosting;
- Negotiation among the segment's leading companies;
- Closing of new contracts with scope, KPIs, and SLAs developed by Level/Prudential.
– More than 30% reduction in annual spend;
– New IT contracts with SLAs focused on reducing risk and operational dependency;
– Changes to the contracted topology according to business needs.
Contract Duration
- Several suppliers, with no standardization of contract clauses and pricing;
- Market requesting price adjustments;
- Current suppliers in place for years;
- Complex modal typology (road, air, and armored vehicle).
- Allocation of a team specialized in logistics and facilities projects;
- Execution of a strategic sourcing project, identifying new supply sources;
- Scope development for Facilities categories.
– In addition to mitigating price increase requests, a reduction of around 7% compared to current values;
– Development of new suppliers for freight and facilities;
– Standardized contracts, considering an expansion plan.
Contract Duration
- Several units spread across Brazil;
- Inexistent contracting scope, operational bases involving multiple suppliers;;
- High cost and decentralized management.
- Scope consolidation across all units in the industrial and administrative cleaning category;
- Engagement of major players in Brazil;
- Structured Strategic Sourcing project for facilities categories.
– Average reduction of 12% in the contracting of the services in question, in addition to mitigating price increase requests during project execution;
– Volume consolidation and supplier base reduction;
– Execution of new contracts with SLAs.
Contract Duration
- Decentralized contracting, lack of detailed scope and service level policies;
- Different service level standards and diverse operational management models and controls;
- Conflicted relationships with service providers with imminent labor risks.
- Assessment of processes and detailed preparation of service scopes by activity (900,000 m2);
- Development of a service level improvement plan and creation of SLAs focused on productivity gains.
– 9% savings;
– Reduction of labor risks through the adjustment and standardization of operational models (elimination of job role deviation);
Contract Duration
- Decentralized contracting, lack of detailed scope and service level policies (structure redesigned by Level – Procurement Transformation Contracting);
- Lack of department performance indicators and monitoring of savings and/or budget visibility.
- Mapping cost optimization opportunities (Spend Assessment);
- Strategic Sourcing initiatives for 15 categories.
– Average savings of 25%;
– Development of medium-term contracts with competitiveness clauses;
Contract Duration
- Suppliers requesting price adjustments;
- Abusive contracts in some categories (e.g., Industrial gases);
- Current suppliers in place for a long time, especially for service categories, in a comfort zone.
- Execution of strategic sourcing in various categories of materials and services;
- In the case of the industrial gases category, specific action involving legal and our experts.
– Average reduction of 12% in the addressed categories;
– In the case of gases, very significant reduction and drafting of a new contract;
– Contract extension to Mexico, Peru, and Chile, achieving average savings of 13%.
Contract Duration
- Bunge had several distinct business units (Bunge Alimentos, Fertilizantes, Usinas, etc.);
- Due to a strategic shift in the company, Bunge decided to centralize operations, including procurement.
- Analysis and consolidation of purchases made by all Bunge business units;
- Structuring and execution of Strategic Sourcing projects across all indirect materials and services categories.
– Single contracts for each category, centralizing volumes and management;
– Average savings generated of 11% in negotiations;
– Single and centralized master data for MRO items.
Contract Duration
- MRO supplier in place for nearly 10 years;
- Request for price adjustment due to reduced volume purchased in the On-site Store;
- Client's interest in revalidating whether the MRO On-site Store model is the best supply model.
- Analysis of current costs against the market;
- Identification of new companies capable of implementing on-site stores;
- Analysis of consumption profile and volume to be acquired in the coming years.
– Negotiation with the MRO market;
– Volume split between 2 companies (MRO and PPE), creating competition between the stores;
– Removal of the bearings category;
– Average reduction of 7% in current pricing and mitigation of claims.
Contract Duration
- Several units spread across Brazil (factories and offices);
- Suppliers requesting price adjustments;
- Multiple suppliers, complicating management;
- Different scopes for the same services across distinct locations.
- Execution of Strategic Sourcing waves, involving all units across Brazil;
- Standardization of scope and economies of scale by uniting all companies in the negotiation process.
– Average reduction of 7% in services and 13% in indirect materials;
– Reduction of the supplier base;
– Standardized scope across the entire Corporation.
Contract Duration
- Decentralized procurement, lack of detailed scope and SLAs;
- Different service level standards, operational management models, and diverse controls;
- Oversized routines and activities outside usual competitiveness standards;
- High supplier base.
- Development of service scopes with routines according to the criticality of areas and drafting of compatible SLAs;
- Identification of sporadic activities with low routines and specialization to change the contracting model to floating/on-demand.
– Savings of 18.0% across Facilities, IT, and Marketing categories;
– Adjustment of routines, drafting of fixed-price contracts for sporadic services and activity-based contracting, and implementation of a productivity model across branches.
Strategic Sourcing is an innovative and comprehensive approach to the procurement of products and services, focused on selecting and managing strategic suppliers. This systematic methodology aims to maximize value and competitiveness, ensuring your company obtains the best products and services at the best cost, fostering a sustainable competitive advantage in the market.
Implementing Strategic Sourcing can deliver a range of significant benefits to your company. In addition to reducing costs, this methodology helps optimize the supply chain, improve the quality of acquired products and services, and foster long-term partnerships with strategic suppliers. These benefits result in greater operational efficiency, higher customer satisfaction, and ultimately, an increase in your company's profitability and competitiveness.
The Strategic Sourcing process comprises several well-defined stages, including identifying company needs, detailed market research, technical supplier assessment, negotiation of terms and conditions, selection of the best suppliers, ongoing supplier relationship management, and continuous monitoring to ensure strategic objectives are met. Each step is crucial to ensuring your company extracts maximum value from its procurement activities.
The main objectives of Strategic Sourcing are to reduce costs, improve the quality of acquired products and services, optimize the supply chain, and establish long-term strategic partnerships with reliable suppliers. These goals are achieved through in-depth analysis and strategic planning, ensuring every procurement decision contributes to your company's success and competitiveness.
The implementation time for a Strategic Sourcing process can vary depending on project complexity and scope. In general, it involves several weeks to months of detailed analysis and strategic planning. During this period, Level Group works in close collaboration with your team to ensure all process steps are effectively completed, resulting in a smooth transition and tangible benefits for your business.
No, companies of all sizes can benefit from Strategic Sourcing. Regardless of your company's scale, this methodology can help improve your supply chain and strategically reduce costs. Level Group customizes its Strategic Sourcing strategies to meet each client's specific needs, ensuring small, medium, and large enterprises can achieve significant results.
Yes, Level Group can offer ongoing support after the implementation of the Strategic Sourcing process. Our commitment is to ensure the process remains continually aligned with your company's strategic needs and objectives. We provide ongoing monitoring and support to continuously adjust and enhance the procurement strategy, securing sustainable long-term results.
Level Group stands out for its expertise in rigorous technical evaluations, transparent negotiations, and continuous supplier relationship management. Our personalized approach and commitment to excellence ensure your company receives high-quality products and services while maximizing value and competitiveness. We work as a true strategic partner, focused on meeting your specific needs and achieving your business goals.
To optimize a company’s performance, it is essential to analyze the market in which it operates. We conduct comprehensive assessments of the supplier market, technologies, regulations, and associated risks.
Aiming to assist procurement departments in improving their effectiveness, we provide consulting services to align processes, technology, and resources with market best practices toward a high-performance structure.
To define effective goals for increasing efficiency in the Procurement area, an in-depth diagnosis and planning must be carried out beforehand. To this end, our Spend Assessment methodology is a highly effective tool.
