€150M Procurement Synergies
H&Z’s strategic nine-month program integrated two energy giants, delivering over €150M in procurement synergies through collaborative teams and innovative processes.
Client Challenges
Mergers and integrations are complex, particularly in the energy sector. The challenge was to unite two global players, realising the theoretical benefits of combined direct and indirect materials spend. Key obstacles included technical integration, cultural merging, and overcoming organisational change fatigue to achieve tangible results.
H&Z Approach & Success factors
H&Z formed cross-business unit, cross-functional teams from both entities, including Cost Value Engineering, Supplier Quality, and Procurement, to drive lasting change. These teams were tasked with identifying short, medium, and long-term synergies through Lever Workshops, considering all potential levers. The H&Z team supported the development of the future Target Operating Model for procurement in the post-merger organisation.
A dedicated team of 15 consultants meticulously steered the nine-month programme to success. Key activities included in-depth spend analysis using Power BI, maturity assessments with the H&Z World Class Procurement model, and “Product Conventions” to identify technical savings. Weekly “review” sessions with commodity managers ensured hands-on implementation, while comprehensive project management ensured continuous progress and resolution of challenges.
Results
The programme successfully identified and delivered significant synergy potentials, exceeding €150m in value. By establishing cross-functional teams from Cost Value Engineering, Supplier Quality, and Procurement, the initiative fostered a collaborative environment that drove sustainable improvements. New forecasting processes and hedging tools were implemented to enhance procurement efficiency, while the Commodity Management methodology was embedded across the organisation. The hands-on approach and rigorous project management ensured that theoretical plans translated into tangible results. This transformative effort not only achieved cost reductions but also positioned the merged entity for ongoing success and operational excellence in procurement.
