Manufacturing
Manufacturing – Procurement Academy & Category Management Support
Global Mining Equipment Manufacturer
Situation
- Business marketplace becoming more competitive
- Profit targets becoming more challenging to achieve
- Supply markets not perceived of offering best value compared to competition
- Need for common process to ensure supply markets were effectively challenged and motivated
Approach
- Appointed to provide category management and change management
- Training and development of the whole procurement team worldwide effected.
- Development followed up by every delegate working on a specific project with a coach / consultant in order to secure optimum payback
- Developed on-line suite of documentation
Benefits
- A significant payback with some projects delivering in excess of 100:1 and the average pay back running at a level above 18:1
- Category management now embedded and stakeholder community usually support the procurement team in this process.
- Improvements in service and innovation in a number of areas, significantly increasing operating effectiveness within manufacturing operations
Manufacturing – Transformation, Capability Uplift and Cost Reduction
Newspaper publishing business
Situation
- Family culture in organisation
- No procurement professionals in organisation
- IT group committing significant spend based solely on technical evaluation
- Directors negotiating deals without assessing category significance
- Procurement policies and procedures not formalised or accepted
- Significant challenges with key supplier relationships
- Inadequate monitoring of commercial impact of decisions
Approach
- Spend and risk analysis
- Category wave plan and program developed
- We supported the recruitment of teams to lead each category
- Led negotiations with key suppliers to improve commercial outcomes
- Developed category specific, processes, policies and procedures
- Delivered training and mentoring for team to help them drive best value in each category
Benefits
- Reduced costs by $7m annualised against spend of $90m
- Built new category relevant teams
- Brought in Category best in class IT purchasing processes
- Established baseline savings calculation process
- Embedded new best in class processes and training
- Built team with sense of place and purpose