A short case study highlighting how a review of the Categories, Contracts and Target Operating Model can add value and improve reputation -contact Mike Hammond to learn more and discuss how Redtree can help your company achieve similar outcomes.
THE SITUATION
Blue Chip Company Category and Procurement Team failing to deliver expected cost savings.
Poor internal reputation amongst key stakeholders and business partners due to poorly structured contracts and failure to drive improvements and deliver innovative solutions with 3rd Party Suppliers, resulting in risk of undermining company’s competitive advantage.
Low moral and motivation of staff within the teams leading to staff retention challenges.
THE TASK
Review the Target Operating Model and Sourcing Categories to:
a) Improve End to End alignment with internal and external business partners
b) Drive improvements in performance
c) Deliver the innovative solutions to restore competitive advantage
THE ACTION/APPROACH
Obtained Senior Leaders endorsement, sponsorship and commitment of Business Partner resources to support the review
Reviewed “as-is” situation with internal Business Partners – Contracts, Contract Performance, Organisation Design, Ways of Working, Transactional Processes
Reviewed updated Business Strategy and Plan and updated Business Needs
Completed a Supply Market Update – Updated Risk Analysis, Competitive
Positioning, Procurement Targeting, Strategic Supplier and Value Opportunity Identification
Updated Sourcing Strategy
Proposed organisational revision to ensure Procurement teams align with Business Partners organisation
Provided Sponsors with Roadmap and detailed plan to deliver improvements
THE RESULTS
Cost savings, improved contract performance. Mitigation of competitive advantage risk
Improved relationship and reputation with internal business partners
Increased perception as a partner of choice within supply market
Revitalised value proposition for staff, improved retention and build of category and business expertise