Increasing Enterprise Value Through Procurement and Supply

Situation

A leading UK Facilities Management company faced a rapidly expanding business that required best of breed Procurement and Supply Chain practices to differentiate their operations and add Enterprise value for their clients. The challenge was to apply significant change across people, process and technology whilst continuing to deliver a 1st class service to their clients.

Task/Target

A thorough review of the team and their activities was conducted with a focus on people, process and technology. Once the ‘As-is’ position was determined and a ‘gap analysis’ was prepared, a Future State blueprint was developed. The transformation plan spanned 5 months and included a re-structured team, revised processes and the introduction of improved IT enablers – in order to be able to handle the increased volume while maintaining that 1st class service level.

Blueprint

Action

The following activities delivered the subsequent deliverables to the client:

  •      An experienced Project Manager to ensure all activities were planned, completed on time and to the correct quality
  •      Subject matter experts who understood the client’s business needs and their aspirations
  •      Fully documented findings and a repository of the collected data
  •      Comprehensive and structured reports to enable the client to make informed decisions
  •      Thorough analysis of the ‘As-is’ position together with strong recommendations for improvement
  •      Support to the client’s senior managers during the course of the project and with their decision making process
  •      The management of an automated bidding process for the selection of eProcurement application software

Results

The professional services provided accrued the following benefits for the client

  • Provision of a clear blueprint for transformation of Procurement and Supply Chain management covering people, process and technology – aspired net benefits of approximately £946k over an 18 month period.
  • Clear definition of all hard and soft business benefits delivered through transformation with a tracking methodology to ensure they are being delivered.
  • Identifying specific areas of project savings throughout the engagement including Category Spend reduction – aspired savings of approximately £1.66M over an eighteen month period
  • Subject matter expertise supporting senior management decision making
  • Cascading skills and approach to the client’s team