Context
Indirect Purchasing makes up more and more of its overall Purchasing turnover. The Indirect Purchasing Manager wanted to intensify his objectives for efficacy in the short- and medium terms. (Reduce costs, maintain and improve quality for internal Clients ...)
CKS was mandated to carry out an Audit of the Corporation's Indirect Purchasing and determine what tangible and realistic actions should be carried out over time for what quantifiable impact.
On completion of the audit, on the basis of their analysis CKS suggested a number of scenarios and action plans along the 5 following axes:
- Organisation and competence
- Opportunity assessment
- Purchasing procedures and practices
- Tools and IT
- Purchasing Management
Objectives
- Benchmark Purchasing practices for every indirect purchasing category
- Propose a plan to reorganise the Purchasing portfolio within the team
- Propose quantitative and qualitative leveraging tools for optimisation taking into account the risks and opportunities for each segment
- Determine a short- and long-term action plan
Resources
For the complete duration of the mission, CKS mobilised a team of eight consultants who were specialised in the Purchasing categories to be focused on: (Temporary work, Telecoms, Marketing, Facility Management, Technical Assistance, Legal needs … )
The process was set up in a number of stages:
- Gather and process Indirect Purchasing Data
- Interview purchasers, Purchasing managers, Legal Department managers, Accounting managers and the IT Director
- Itemize costs and inventory purchasing practices
- Benchmark internal and external purchasing for indirect purchasing categories
- Determine opportunities to reduce costs and define corresponding action plans
- Revamp processes and calculate savings
- Analyse Purchasing IT and make suggestions for optimisation
- Help to set up Strategies for each Purchasing category
Results
- A savings potential of 10% over 2 years
- A plan to reorganise the purchasers' portfolios
- Twelve Strategic vectors for Purchasing categories in accordance with detailed action plans and leveraging tools
- A new method to calculate and monitor savings
