Implementing an Internal Goods/Services Catalogue to Achieve Significant and Sustainable Savings
Strategic Sourcing MRO Procurement
Sustainable value created
- Global spend master data cleansing, implementation of clear taxonomy and spend data visualisation
- In-depth internal and external analyses identified sustainable savings opportunities
- Assessment of criticality resulted in increased standardisation among entities and geographies
- Development of a clear sourcing strategy for technical goods and a roadmap supported by the organisation
- In the first wave, savings of 20% on workwear were realised without compromising quality or safety, 11% on cylinder cages, 8% on generic technical goods, and 9% on safety supplies and fire equipment
Client Profile
A global company operating in energy, retail, and other industrial sectors with an annual spend of €45 million on technical goods.
Project Scope
The project scope covered all spend related to technical goods. At the time, this MRO procurement category had a very fragmented supplier base, with a very long tail. Globally available contracts were not used, and regional/local contracts were not available. The majority of spend on technical goods was also uncategorised or categorised as miscellaneous.
Substantial savings could be realised by rationalising the in-house demand for generic technical goods, improving inventory management, and utilising volume bundling scenarios and e-tools/e-catalogue solutions to streamline requisitions and ordering processes across entities.
Hudicor was entrusted with the task of developing an MRO procurement sourcing strategy for technical goods and executing the first wave in the most interesting subcategories.
Hudicor’s Approach
We began by cleaning up existing data and implementing a clear taxonomy for technical goods. This enabled us to map and visualise the global spend by subcategory. Following that, a sourcing wave plan was formulated and the first wave was executed, comprising the categories of generic technical goods, safety supplies and fire equipment, cylinder cages, and workwear.
In the first sourcing wave, an annual sustainable savings of €1.3 million was achieved.
Interested in accelerating procurement performance and savings?
