Case Study:

Global Steel manufacturer drives €35m savings and transforms its European Procurement operations through “Save & Sustain” programme

Client

A leading global steel manufacturer formed from an intense period of acquisitions and mergers, with a drive to realise synergies, address rising raw material costs and build a procurement capability that will deliver ongoing supply chain benefit.

“The Procura team demonstrated excellent commitment and dedication throughout the programme, during what has been a very challenging time for our business. Due to travel restrictions, meeting face-to-face was not a possibility, but despite this, they were able to engage with team members across each of our sites and work collaboratively towards the cost reduction savings targets.” Global Head of Purchasing, Luxembourg

The Challenge

Following the completion of a successful procurement cost reduction and transformation project for its UK business, Procura was asked to deliver a similar project for the Central and Eastern European entities which included two primary steel manufacturing and four downstream sites across 5 locations.

The objectives were to achieve EBITDA improvements, embed Procurement Excellence and deliver sustainable cost reduction; “Save & Sustain”.

With a procurement team of over 250 personnel spread across 12 global sites, Procura succeeded in implementing a common sourcing methodology, harmonised procurement culture and a unified global team.

Approach

With procurement teams working in silos and, in many cases remotely due to the pandemic, we introduced a collaborative cross-site, cross-functional approach to identifying cost reduction opportunities and embedding best practice.

Online procurement conferences brought together delegates from across the world to support networking and expand the team’s capabilities.

Procura delivered group-wide training, implemented new policies and procedures, and introduced smart digital tools to ensure long-lasting improvements for the client.

Results

• €35.7m savings
• Training programme, 15 separate tailored training sessions and online Training Academy
• 2 global procurement conferences
• 3 digital tools implemented
• 30 procurement best-practice enablers
• 1 global procurement network with 250 personnel

The project established a robust category sourcing process, a centralised contract register for improved visibility and governance, an e-sourcing platform for all business units, and a global procurement network.

The project has been shortlisted for the prestigious MCA International Project 2021: https://www.procuraconsulting.com/2021/06/procura-finalists-in-2021-mca-awards/

Procura delivered bottom-line savings improvements and established a robust category sourcing process, a centralised contract register for improved visibility and governance, an e-sourcing platform for all business units, and a global procurement network.

During a period of significant economic turmoil, resulting in limited travel and remote stakeholder interactions, Procura succeeded in delivering a successful global procurement improvement project with sustained long-term benefits for our client.

For further information or to discuss how Procura could help your organisation – please get in touch:

Email us: info@procuraconsulting.com

Call us: +44 (0)203 693 7275

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