Organisational Design

• Future State Design
• Right Sizing

Case Study: Establishing a New Organisation to Drive Procurement Benefits

• Situation:

  Our client, the Group CFO, was seeking to address several issues including:
• No centralised sourcing group or procurement professionals, as well as, limited or no common processes, methodologies or procurement systems and tools
• Sales contracts were being lost due to uncompetitive 3rd party on-costs

• Solution:

  FirstCatalyst helped develop a comprehensive 5 year procurement strategy for the Group. To help deliver the strategy, we:
• Performed a review (people, process and technology) of the 'As Is' organisation (including benchmarking against other organisations)
• Compared the 'As Is' organisation to the new strategy and identified gaps across people, process and technology
• Developed a business plan (including a spend and savings Opportunity Assessment) which was presented to the Group Board
• Developed and managed an assessment centre for internal and external applicants
• Developed internal communication to 'sell' the new organisation within the company
• Selected and implemented procurement technologies
• Developed and managed sourcing training workshops
• Facilitated two strategic sourcing waves (18 categories) with the new team to embed a common sourcing methodologies, tools and techniques including linking savings to the budget process and general ledger accounts for tracking by Finance

• Impact:

  FirstCatalyst helped the client to:
• Deliver savings of 18% on over £150m in spend within the first 18 months
• Raise the profile of procurement within the company
• Become more price competitive on bidding for new sales
• Increase contract compliance through the implementation of a new compliance management tracking tool