H&Z
H&Z Management Consulting - Consulting with head, heart and hand
15/11/2023

Procurement

Global marine engine manufacturer transforms indirect procurement - from transactional function to strategic business partner

H&Z helps develop the global indirect procurement function. Shifting the focus strategic sourcing to deliver step-change service delivery and benefits impact.

Space Cabine

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 

If you would like to find out more about how we help clients, please get in touch with our dedicated Procurement team. 

Jay Saujani

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Jay Saujani

Richard McIntosh

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Richard Mcintosh