Opportunity Identification
November 11, 2023
The Challenge

A mid cap manufacturing organisation was looking to develop a strategic road map to take Procurement to the next level. The existing team was operating more at a transactional level and had not viewed their spend and supplier relationships strategically. There was a mixed view internally on the benefits that could be achieved through a strategic review. The leadership team were however very keen to understand the benefits that would be available through a strategic review of their organization’s spend and how they should be managing their supply base

The Solution
  • We reviewed the spend across all the areas and mapped them to their corresponding supply market categories
  • We reviewed the contracts currently in place and current initiatives in play
  • Through a focused hypothesis and fact-based approach, we identified opportunities across key areas
  • These opportunities were workshopped with the Procurement Team and stakeholders within the business and validated
  • The feedback from the workshops was addressed and a final report prepared along with a clear implementation plan and 24-month road map for implementation
The Outcome
  • Through the review of $500M of external spend, a saving opportunity of $ 22-30M was identified
  • These opportunities ranged from changing key contractual terms and commercials with incumbents through strategic negotiations, strategic sourcing interventions and optimization of specifications and rate cards currently in place.