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Transformation of Procurement in the Aviation Sector

The Situation

Western EU CEO and CFO needed to re-establish Procurement is a post-Covid world where ALL the existing Procurement team left through redundancy

The Task

  1. Identify and recommend improvements to business control in a business without P2P and a diversified ownership of buying
  2. Find and get immediate/quick win savings >£1m to provide potential investment in the Function/arrest the end-to-end revenue decline
  3. Propose potential routes to transform delivery of procurement to WE business

The Action / Approach

  1. mapped end-to-end procurement processes, assessed group/regional/local Delegation of Authorities, reviewed central vs local decision processes
  2. reviewed expenditures (past and future planned), vendor contract and performance data, engaged internal and external stakeholders and markets to identify opportunities
  3. explored global/regional/local stakeholders and views, potential delivery models from compeitiors and marketplace practice, existing business process and communications strategies

The Result

  1. delivered semi-automated requisitioning processes and PO conversion approaches to provide control tooling, re-dmapped DoA’s and business control points to ensure compliance management and compliance reporting
  2. identified >£2m of potential savings across price leverage, specification challenge, market re-sourcing and model shifts. Commenced delviery of the first £1m savings by implementing asset disposal programme (£250,000 asset recovery and lease elimination), leveraging Fuel Card & Diesel (12% saving), Consolidating and market-testing Telephony & Connectivity (35% saving) and left a legacy of a delvery plan for the further opportunities such as Logistics Outsourcing (£750,000 target saving), Recruitment PSL development (0% saving, but regional Temp PSL/national Perm PSL with readiness for staffing challenge, probity & onboarding processes established), Desktop Print outsourcing (saving £600,000 from a TCV of £1.8m.

Focus In On: Responsible for Digital Business Transformation

New Areas of Value:

Gain access to additional budget through success

Effective delivery against financial targets

Improved business agility and ability to rapidly respond to change and opportunity

Direct positive impact on internal and external customer satisfaction

Creating a culture of involvement, empowerment and connection to the business

Improvements around:

Budget availability affected by external change drivers and uncertain resource estimates

Lack of process and technical integration strategy making the overall solution less efficient

Poor data strategy resulting in siloed, incomplete and poor quality data

Lack of transformation, change and agility mindset in leadership

Lack of exec sponsorship and ownership

Leaders mandating a change management and implementation approach that’s not appropriate to the organisation

Lack of agreement of transformation governance and stakeholder understanding leading to a fragmented approach

Lack of clarity around existing operating model, internal business ecosystem or cross-functional teams

Lack of availability of the right people at the right time across both business and technology areas

Cynicism, lack of buy-in and resistance to change

Relevant Skills

Relevant Business Perspectives

Practice