The Environmental Consulting Services industry is highly fragmented with the top four firms making up about 7% of total revenue. Most firms are nonemploying establishments, and about 20% of industry firms are made up of employer firms. Firms can easily enter the industry and set up shop; however, larger employers are acquiring smaller firms to expand. The industry is strictly focused on the consulting aspect of environmental work. Currently, there are no companies in the industry that make up more than 5% of industry revenue. Competition in this industry is very low, due to the demand of its services.
As a procurement Manager at Vanguard Environmental Incorporated, I would recommend that we buy the services of CH2M Hill because of the following reasons and also I will explain my sourcing strategy to further clarify this recommendation. The services I would buy from CH2M Hill will be to help me develop plans to meet environmental regulatory services. I chose this category to make sure that my company (Vanguard Environmental Inc.) is in compliance with federal environmental policies. Buying the services from CH2M Hill will save some money, get higher quality of service, and give the company enough time to concentrate on core business opportunities.
Cost Savings. This is a critical category in Vanguard Environmental Inc. because failure to follow government regulated laws could put the company in big trouble including shutting the company or imprisonment time, so having a company like CH2M Hill specializes in that area can help prevent circumstances like this from happening. Higher Quality: keeping up with environmental laws is not our core competencies, therefore having a company that does that well than us would make more sense to have them do it for us. This will keep us competitive in the market. Concentration on core business, as indicated before having another company provide the administrative service will free up more time for the company to concentrate on the services we do best. It is critical because of few qualified sources of suppliers, large expenditures, design and quality is high and above all it has complex and rigid specifications.
The strategy I would utilize here will be a strategic relationship with CH2M Hill. Some of the tactics that I will exercise would include working with the supplier to reduce risk of non-availability while minimizing total costs, work towards supply integration with a few key suppliers to optimize planning and inventories and improve reliability and quality of service.
My action plan will be to conduct intense negotiations, prepare contingency plans, analyze market competition, and supplier process management improvements. The sourcing strategy will be strategic relationship. I would establish integrated or close relationships with this supplier (CH2M Hill) and work together to share information, collaborate, and further each partner’s goals. I will establish a long term contract
In conclusion, I believe partnering with CH2M Hill to handle legal environmental services will make the company more effective, efficient and above all stay competitive in this fragmented market.
ENVIRONMENTAL CONSULTING SERVICES
Instructor: Ms. Tracy Freeman
Due Date: 01/31/2013
Business Consulting Services Introduction:
Krabeepetcharat defines Environmental Consulting as an industry that provides advice to businesses and federal governments on environmental issues, such as controlling environmental contamination from pollutants, toxic substances and hazardous materials. Environmental consultants identify problems, measure and evaluate risks, and recommend solutions. The industry employs a multidisciplined staff of scientists, engineers and other technicians. Since 2007, the Environmental Consulting industry has been going strong as companies “go green.” The introduction of new legislation to curb emissions has