Digital Transformation in Procurement: A Success Story in Financial Services

H&Z supports a leading German insurance group in the development and implementation of its vision for the Digitalization of Procurement.

Client Challenges

Our Client, a German insurance group, offers a wide range of insurance products for private individuals, tradespeople and companies. As a cooperative company, our client is decentralized and has 1,200 locations throughout Germany. Purchasing is organized centrally and manages a large number of indirect product groups (including IT, facility management, professional services marketing)

The growing complexity of the business model and regulatory requirements pose challenges for purchasing, which are to be met by the digital transformation of purchasing processes.

In doing so, the client was targeting:

Agility & speed in procurement processes
Increased transparency
Bottom-line cost Improvement
Mapping & compliance to all regulatory requirements
And to become an Improved service partner for all other interfacing departments

H&Z Approach & Success factors

Drawing upon H&Z's deep expertise in the financial sector, our digital procurement experts provided end-to-end support, encompassing:

Development of the purchasing strategy for the year 2025
Designing the purchasing processes, including P2S (Plan to Strategy), S2C (Source to Contract), and P2P (Procure to Pay), as well as defining the role of purchasing
Coordinating and adapting processes in collaboration with all relevant stakeholders
Digitizing processes and designing user journeys to streamline efficiency
Assisting in tendering and facilitating the award process for system providers involved in the procurement suite
Providing transformational support during the implementation of tools, including communication and training

Results

Through a harmonious blend of strategic foresight and pragmatic execution, we realized the envisioned outcomes, amplifying the capability of the procurement function.This led to the enhancement of the purchasing function and an increase in the managed spend. Additionally, a significant savings and cost avoidance of approximately 10% were achieved.