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Global Procurement

NEEDS-BASED RESULTS

 

Global Procurement

SITUATION

Procurement organization at a global automotive supplier had significant process and system deficiencies within a fragmented, decentralized organization.

DRIVER GOAL

  • Deliver Procurement cost savings of $9.1 million through reduction in purchase costs and process improvements.
  • Realign the Procurement/Strategic Sourcing organization.

RESULT

  • Identified cost reductions totaling $10 million in annualized savings with potential of $54 million targeted for 2010.
  • Delivered additional $20 million in working capital improvements.
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Case Study

Create World Class Procurement

Issue

A high-level assessment of the Procurement organization at this global supplier to automotive and industrial industries identified significant process and system deficiencies including a fragmented, siloed, non-performing decentralized organization. The Highland Group was engaged to deliver rapid and measurable financial results to be realized through the implementation of improvements to supplier and contract management, strategic sourcing, negotiating skills and the processes and technology used to manage and measure the effectiveness of the Procurement function.

Highland Approach

The Highland Group focused its implementation strategy on addressing the client’s critical needs while quickly becoming self-funding. Before launching into implementation, the team conducted a thorough organizational assessment of current skills capabilities, including past work experience, tenure in current position, degrees and certificates, and succession desires. The data collected from the high-level assessment of the Procurement function along with the results of the skills assessment enabled the team to create a detailed implementation roadmap to achieve the organization’s Driver Goals.

Actions Taken

  • Conducted a series of global organizational redesign sessions to design the go-forward functionality breaking the traditional barriers and silos that impacted performance, including the recruitment of new Procurement professionals.
  • Developed a strategic alliance with and management process for multiple 3rd party technology suppliers to ensure manageability and sustainability of the reengineered business processes.
  • Formed a new banking relationship for the P-Card solution that also supported the Procurement technology solution.
  • Provided direct, hands-on sourcing leadership in over 40 negotiations.
  • Implemented a comprehensive multi-media communication process to support the change process.

Delivered working capital improvements of

$20m

providing a cost savings of $10 million

I am very pleased with the quality of the Highland team and the results that were delivered. The ‘Contract for Success’ measurement process was brilliant!

Corporate Chief Financial Officer

Related Information

industry-based

subject matter-based

Presenting Analyst

John is a Senior Executive and Presenting Analyst at The Highland Group with more than 30 years of leadership experience in management consulting. He has led hundreds of global consulting engagements that delivered an array of operational improvement solutions with total client benefits exceeding $1 billion dollars.

Client Partner

Financial Services, Marketing & Consumer Products

Petrina is a creative, hands-on executive with over 25 years of international business experience with a proven track record of working collaboratively across traditional boundaries and solving complex operational issues. She previously served at the senior executive level of one of North America’s leading financial institutions and several global consulting organizations. There, she led engagements serving industry-leading clients in United States, Canada, England, Germany, Austria, Switzerland, Norway and the Netherlands.

Head of Organizational Development

Don is an internationally recognized organizational change and development expert with 33 years of global experience in partnering with results-oriented clients to achieve sustainable behavioral change and targeted bottom-line results in productivity, quality and profitability. He is recognized for fostering high levels of enterprise-wide sustainable performance improvement ownership. Don’s key strengths include his ability to engage stakeholders at all levels, create collaborative environments and work within the culture to achieve leadership, management and employee breakthrough results.

Senior Consultant

Supply Chain

Laurence has more than twenty years of industry and consulting experience in all areas of supply chain management – including inventory management and procurement – and in Total Working Capital management.

Project Leader

Sales, Marketing & Consumer Products

North America

Bill is a senior project leader with more than 20 years of hands-on experience in assisting multinational companies by deploying his expertise in Lean Six Sigma and Business Process Management tools, tactics and strategies. He has deep expertise in sales and marketing improvement, supply chain optimization, fixed-cost reduction, channel management, total production management, balanced scorecards and post-merger integration.