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Procurement Management

NEEDS-BASED RESULTS

 

Procurement Management

SITUATION

Manufacturer of CDs and DVDs had a decentralized supply chain and the procurement function lacked strategic focus and state-of-the art procurement practices.

DRIVER GOAL

  • Standardize Operating Procedures across the globe.
  • Deliver a performance measurement system for Supply Chain and Procurement.

RESULT

  • Delivered common processes and practices across the global landscape.
  • Created visibility to critical supplier metrics.
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Case Study

Develop Procurement Standard Operating Procedures & Performance Metrics

Issue

As a result of growth through acquisition, a manufacturer of audio cds, cd-rom, and pre-recorded audio and video cassette tapes had a highly decentralized approach to supply chain management and procurement. Further complicating the situation, the company had disparate supporting ERP systems across the global landscape which made it difficult to extract common data for measurement.  The current Global Procurement organization lacked a strategic focus and state-of-the art procurement concepts.  A challenging market with declining sales and margins required Procurement to reduce costs without impairing operations.

Highland Approach

Research revealed that the organization needed to unify Global Procurement through the development of Standard Operating Procedures (SOP), formalized job descriptions and common performance measurements. The Highland Group partnered with the VP of Global Procurement to define the depth and breadth of the effort to ensure a satisfactory result.

Actions Taken

Set up performance measures for supplier delivery/quality and inventory performance.

  • Defined all required metrics in terms of scope, calculation, and data extraction process.
  • Visited all geographic locations to determine the source of data and extraction method.
  • Developed dashboards for each measurement, targets and upper and lower control parameters.
  • Established a global IT team to develop the necessary data extracts and produce daily reports for review by Procurement.
  • Implemented a daily data extraction and review process.
  • Made Purchasing Managers accountable for daily review of performance measures and for taking corrective action where necessary.

We could have never implemented this massive change this quickly without you!

Vice President, Global Procurement

Related Information

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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.

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.