SMB -That Procurement Project

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.

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