Manufacturing

Procurement Transformation

Situation

Solution

• A global paper manufacturing organization

• Sourcing devolved and uncoordinated

• Limited Procurement Transformation undertaken

• No clear and consistent sourcing or supplier management processes

• No consistent e-Enabled purchasing collaboration

• Pockets of good practice

• Existing sourcing resource stretched

• Desire for step change

The client understood the potential benefits of leading practice procurement but had few of the required building blocks in place.

Sourcing was immature and uncoordinated. There were a few pockets of good practice but this was not shared across the organization.

Collaboration globally was difficult to achieve and existing resources were overstretched and focused upon transactional activities.

• Implemented Category Management sourcing process across the entire external spend (i.e. 20 teams)

• Introduced web-conferences for educational purposes, enhanced communication and reduced travel costs

• Installed a client specific web portal to enable real-time collaboration in the Sourcing Community

• Established an e-Enabled benefits tracking system

• Developed a Procurement Strategy and created a master plan for a new Sourcing organization

• Developed a roll-out plan for Procurement Transformation skill assessment and training program

• Established a group wide governance structure

• Supported the creation of a supplier measurement/management approach

QP Group worked with the client to develop a transformation program. Category Management was introduced across the entire spend. Over 20 teams were formed over the duration of the program.

A customized methodology was developed and implemented. A Procurement Transformation assessment and training program improved the skills of the team.

Collaboration across the regions was facilitated by web-conference which accelerated delivery while managing travel costs.

e-Enabled benefits tracking was introduced and used to manage the savings process. Results were auditable.

A procurement strategy was created and this was used to frame a variety of initiatives focused upon sustaining the gains of the program. Key to this was the development of a governance structure with ownership by senior management.

Benefits

• Delivered significant bottom-line improvements

• Improved collaboration and knowledge sharing in the Sourcing community

• Improved Procurement Transformation skills of individuals and increased the role of Sourcing within the business

• Robust benefits tracking implemented

• Provided a clear road map to enhance and sustain the business impact of the Sourcing function

• Started the roll-out of e-Auctions

• Implemented consistent methodology and toolkit

• Personal training and development plans for each team member

• Process for managing and monitoring suppliers

The program met all benefits delivery targets. These benefits were auditable.

A global sourcing capability was created that has proved itself capable of sustaining the improvements.

Accelerated sourcing tools including e-Sourcing have been effectively implemented.

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