International
A leading global steel manufacturer appointed Procura in 2020 to address rising procurement costs. With a procurement team of over 250 personnel, stakeholders were spread across multiple global sites. The scale and complexity of the project meant overcoming many challenges, including a fragmented business culture and remote working.
Objectives
Using proprietary technology to analyse spend categories, Procura identified €3.11bn of addressable spend and targeted savings of €42m to €76m. The objectives were to achieve EBITDA improvements, embed Procurement Excellence and deliver sustainable cost reductions.
Approach
Using online digital solutions, Procura worked collaboratively with the client’s buyers to identify cost reduction opportunities and embed best practice. We delivered group-wide training, implemented new policies and procedures, and introduced smart digital tools to ensure sustainable value.
We found procurement teams working in silos and therefore introduced a collaborative cross-site, cross-functional approach to sourcing. We also created a governance framework to communicate project status and resolve issues.
Online procurement conferences brought together delegates from across the world to support networking and share best practice. We also recruited local consultants to learn from their specialist knowledge of the market and supply base.
Results
- €35.7m savings
- 15 separate tailored training sessions
- 2 global procurement conferences
- 30 out of 35 sustain enablers implemented
We established a robust category sourcing process, a centralised contract register for improved visibility and governance, an e-sourcing platform for all business units, and a global procurement network.
Team procurement capabilities were expanded and embedded in:
- Strategy and organisation
- People and skills
- Strategic procurement
- Supply chain
- Data, systems and performance measurement
- Policies, procedures and compliance
Outcome
As well as achieving tangible cost savings, our team delivered significant improvements for the client by embedding procurement excellence and a common sourcing methodology across the organisation. During a period of significant economic turmoil, resulting in limited travel and remote stakeholder interactions, Procura succeeded in delivering a successful global procurement improvement project with sustained long-term benefits for our client.
View the Procura Consulting profile in the MCA Members Directory.