Case Study:

Global industrial manufacturer establishes a world-class, business-wide procurement function to leverage group scale and drive savings.

 

Client

  • A division of one of the world’s largest industrial manufacturers.
  • 10 business units with a silo approach to procurement.
  • No “group” approach to governance, oversight or performance management.
  • Recognition that economy of scale was not being leveraged.

Approach

  • Procurement Function Diagnostic for each business unit to assess levels of procurement maturity around the organisation.
  • Current state mapping with each business unit to understand ‘as is’ procurement practices and develop improvement opportunities.
  • Development of a 3-year Procurement Transformation Roadmap which focusses on Strategy, People, Process & Measures.
  • Creation of standardised tools, techniques and methodology.
  • Engagement with each business unit to form a group procurement community and collaborative team environment.

Results

  • A world-class “Group” procurement function established.
  • Purchasing scale leveraged and cost saving benefits achieved throughout the organisation, which can be maintained in future.
  • Group-wide procurement strategy and policy.
  • Procurement community now operating across all business units with improved communication and best practice sharing.
  • Standardised sourcing process, along with tools, templates and techniques now embedded within the function.

 

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