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EY joins the Czech Association of Procurement and Sales

EY, along with other leading Czech and international companies, has joined the newly created Czech Association of Procurement and Sales (CANAP). “We believe the creation of this independent platform is an important measure that will increase expertise and transparency in the sphere of procurement and sales. We also welcome the opportunity for independent discussions and the exchange of specialist knowledge,” says Bronislav Pánek, Executive Director, Advisory Services, EY.

The growing complexity of and interconnections in supply chain is currently making the organization and management of suppliers in manufacturing companies increasingly important. Surveys and experience bear out the fact that there is more and more downward pressure on the price of inputs and final products and as a result is an impact on the lowest price through purchasing categories. However, as part of the long-term vendor management it is essential to take account of the influence of non-price parameters, e.g. the configuration and monitoring of performance indicators, which support improvements to the quality of products and ongoing cost reduction on the basis of cooperation. Another important element is the deepening of cooperation in the sphere of data sharing, which contributes to the efficient stock planning and warehousing costs minimisation. The supply chain strategic management contributes to the fulfilment of long-term strategic objectives and optimisation of the time restrictions and financial costs, since expenses for the procurement of materials and services are usually approximately 80% of the total operating expenses of manufacturing companies.

EY advisory team projects in the sphere of purchasing and sales focus mainly on:
• Optimisation of the process and organisation of sourcing, procurement and stock management,
• The organisation of tenders,
• Procurement controlling and management reporting,
• Optimisation of the logistics and distribution network,
• Configuration of the segmentation of customers and price policy,
• The evaluation and optimisation of bonus systems, and
• Order-to-cash process improvement and the prevention of revenue outflow.

The results of all of these projects are positively manifest in a company’s financial results and cash flow. The aim is to reduce expenses, improve procurement and sales management, improve a supplier’s material and information flows between individual links in supply chain, and boost market competitiveness. The right setup between sales, production, technology and purchasing in relation to suppliers is a source of competitive advantage and allows profits to be generated. Close cooperation between supplier and customer can then become a source of innovation or can shorten the market roll-out time, which again makes for a competitive advantage. It is clear that strategic purchasing and the effective management of supplier relations should be strategic priorities, since they impact fundamentally on a company’s financial results and overall value. Wherever the opportunity to reduce material, personnel and fixed expenses is limited and risky, we offer clients advisory services in the sphere with a high potential for being a source of profit.


About EY
EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients, and for our communities.

EY refers to the global organisation, and may refer to one or more of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organisation, please visit www. ey.com/CZ.

About CANAP
http://www.canap.cz/