Procurement Organization Transformation Project
Procurement Organization Transformation Project
Sustainable value created
- A review and improvement of the current purchasing strategy according to procurement best practices
- Development and implementation of a governance model aligned with the purchasing strategy
- Implementation of new structure and processes within all departments
- Detailed analysis of category spend with a spend reduction strategy and action plan
Client profile
A financial company with a spend of more than 60 million euros on FM, IT, marketing and professional services.
The challenge
The project began with a complete review of the missing elements in an already sound procurement strategy. A transformation of the procurement organization followed since there was no centralized contract management yet and no clear division of roles.
The insurance company also launched a P2P project to improve the efficiency of their accounts payable by implementing a single E2E procurement process.
While the P2P project had already been implemented, there were still challenges in developing a governance model and implementing new structures and processes within all departments and the E2E procurement process was still under the finance department’s control.
Hudicor’s approach
The team started with a diagnostic to understand the current way of working, the As-Is, in order to define purchasing strategy and design the To-Be. The main focus here is on increasing procurement capabilities (governance, organization, people, processes,…). For this, Hudicor used a Workshop approach to engage key stakeholders and management.
The next step was to conduct a spend analysis to create visibility in the savings potential and develop an action plan.
The senior leadership of the company was surprised when confronted with some of the details of the spend analysis.
Interested in advancing the maturity of your purchasing organization?
