Our client, a decentralised company, faced challenges in its procurement function. Procurement was fragmented among locations and business units, workflows and approvals were inefficient and technology was not exploited fully, while other internal business functions considered procurement as a strictly transactional activity.
Top management aspired to transform procurement into an integrated team, centrally managed, in order to fully contribute to core company competencies, and better manage costs, while changing internal perceptions.The way to problem solving
Our work enabled our client to deploy a new business model in procurement.
We designed an effective governance scheme that embraced procurement units across locations and business units. We organized procurement around standardized spending categories, thus enabling our client to perform thorough analyses. We enhanced control over indirect spending categories by implementing a centralized approach. We streamlined existing processes and introduced new ones for contracted and not contracted goods and services to facilitate and speed up purchases. We introduced a robust reporting system, including a detailed scorecard for strategic suppliers, covering key aspects, such as quality, safety and sustainability, delivery, cost effectiveness and service responsiveness. Finally, we facilitated a targeted implementation of the transformation process, and managed to change internal attitudes. Procurement is now perceived as a key player in the company's strategic direction.