Collaborating with a top-tier marine engine manufacturer, H&Z spearheaded a pivotal transformation in indirect procurement. Starting with a combined functional assessment and opportunity analysis to build the case for change, this was followed by a programme of organizational development and benefits delivery through global category management. H&Z worked in partnership with the client’s organization to build a global indirect spend function, streamlining transactional processing and focusing on strategic value-add to the business.
Client Challenge
With nearly €1bn in spend, and management of indirect spend spread across a number of geographical organizations and functional responsibility, the client recognized both the need and the opportunity to establish a world-class indirect procurement function.
H&Z Approach
In the first phase, H&Z undertook a combined World Class Procurement diagnostic and Opportunity Assessment to benchmark the maturity of the indirect procurement function and to assess the savings potential that could be achieved. Culminating in a board paper to support the case for change.
Subsequently, in phase two, H&Z championed the metamorphosis of the indirect procurement function, sculpting it into a world-class procurement function.
- A bespoke development programme to enhance the Enablers of Procurement Excellence; including Category Management, eSourcing, Contract Management and Supply Base Management, fully supported by training & development of the client teams
- Hands-on support to accelerate the embedding of Category Management; creating global category strategies and support for sourcing activity to implement the strategy and deliver the identified benefits
Results
- Business Case and Board approval to establish world-class indirect spend procurement function
- Establish one Global Indirect Procurement Function, with world-class enablers, processes and tools
- Digitalization and optimization of transactional processing, re-aligning resources to focus on strategic sourcing initiatives
- Programme of Category Management as the driver of strategic impact and savings delivery
