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

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