The Challenge
Our client’s leadership team approached us with a request to review and enhance their existing procurement practice. In their current state, the organization faced:
- fragmented procurement processes
- limited spend visibility
- inconsistent supplier management practices
- manual workflows which led to inefficiencies and compliance risks
These circumstances prompted our customer to seek our expertise to design and implement a unified, data-driven procurement transformation program.
Our Approach
Phase 1
We assessed the efficiency of the current Procurement Support model: Spend Under Management (SUM), SUM per Resource, 80/20 analysis, and Tail Spend, and compared them to industry standards. We then assessed category and business alignment, category management strategies and project pipeline, followed by technology (eProcurement Platform), mission statement and policy.
Phase 2
We architected a procurement org. structure and aligned it to our assessment. We then developed a robust category management program with project pipeline, savings tracking methodologies, a continuous improvement program and supplier engagement processes. Finally, we designed a workflow of new eProcurement systems (P2P) to mirror the procurement process.
Phase 3
We embedded a team of experienced Category Managers and Strategic Sourcing professionals within client’s procurement department. We executed on an annual Gantt to implement the programs listed above. The program included ongoing continuous improvement, through training, seminars, external certifications and conferences to keep appraised of category trends, laying the foundation to robust Category Management.
Results
- Greatly improved procurement processes, business alignment and stakeholder satisfaction.
- Outcome resulted in significantly higher savings than prior to the Procurement Transformation program being implemented.
- Implemented efficient data improvements and reporting on items such as savings, spend trends, indices, and more.
- Establishment of mature & experienced procurement team that is supported by Procqure’s benchmarking data, experience and processes.
- By leveraging our deep procurement expertise and change management capabilities, we delivered a seamless transformation — streamlining processes, optimizing supplier performance, and driving sustainable value beyond cost savings.
