Financial Services
Quick Wins

Situation

Solution

• Global insurance company

• Heavy use of local contractors

• 20,000 different suppliers

• Inconsistent service levels

• No system to segregate claims

• Team had little training in procurement

QP Group’s client was a global service company with general consumer and business-to-business clients. QP Group was engaged to identify opportunities for improving procurement capability across the organization in the buildings supply chain.

No criteria were in place for the selection of contractors to respond to insurance claims. This practice had led to over 20,000 different firms being used throughout one country. Not only was this difficult to manage in terms of cost effectiveness and coordination, but also in the delivery of consistent service levels.

Our client had also put in place a national contract with a preferred supplier. This, however, had few performance and delivery benchmarks and was seen as ineffective by both parties.

Systems were inadequate and could not deliver the appropriate information to help manage the business. The claims team had received little professional training or education in procurement techniques and good practice.

• Global cross-functional teams

• Clear business requirements

• Key Market intelligence

• Total Life Cycle Cost management program

• Comprehensive Supplier Management program

Global cross-functional teams were commissioned, led by procurement, but with significant support and involvement of corporate engineering, site engineers and other key stakeholders.

QP Group education workshops followed by facilitation helped identify key issues, true business needs versus wants, supply market analysis and total life cycle costs.

Parallel work streams were identified and improvements implemented to the current installed base e.g. by better supplier management.

Strategies developed for improved equipment procurement.

Road show conducted to inform the business and stakeholders of the changes and get their buy-in and understanding of the new processes from which they would benefit.

Benefits

• Identified gaps in skills and knowledge

• Created training and education program

• Segregated categories into sections

• Used sourcing techniques and competitive tendering

• Defined concepts so quality could be monitored

QP Group worked with the client’s team to identify gaps in skills and knowledge that were then filled by training and recruitment.

Work was undertaken to segregate the existing large categories into workable sections, allowing data to be better manipulated and presented. Sourcing techniques and competitive tendering were also introduced in the new sub categories to improve cost-effectiveness.

We worked with the preferred supplier to tighten up the contract and implement procedures to create a more effective working relationship on both sides. The key concepts of “quality” “service” and “performance” were defined clearly, enabling benchmarking to monitor standards of delivery.

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