Defining a procurement strategy and the operationalisation thereof.
Result:
A defined procurement strategy, standardised protocols and processes, governance and systems to support procurement.
1. Problem Statement
The central theme of this solution is to shift from a buying culture to a sourcing culture through the introduction of standardised protocols, processes, governance and systems to the operational procurement of the company.
The goals are to:
Reduce risk (standardised work, rationalise product and suppliers, contract management);
Increase quality (increase visibility through BI, quality metrics, people development);
2. Solution Approach
Create organisation wide collaboration – currently only between suppliers and business unites, central procurement department excluded from the process (includes supplier selections, orders and deliveries).
Create governance to select and review suppliers (enforces optimum cost and service).
Create visibility on indirect expenditures using BI:
Define expenditure categories;
Improve processes for master data management (adding new suppliers and materials);
Re-design procurement process.
3. Project Outcomes
Improved the procurement capability maturity of procurement within the company;
Define roles and mandates of functional areas and enforce collaboration;
Define and improve business processes:
Procurement operations;
Data management;
Create visibility and rationalise the expenditure categories: