 |
Situation
|
|
-
One of the world’s largest pharmaceutical companies
-
A complex, decentralised purchasing organisation
-
Rigid Sourcing process with a “one way” approach for all categories and sub
categories
-
Methods and tools were not comprehensive
-
e-Enablement was limited to auctions supplied through external provider
-
Skills gaps and no clear development or career paths for procurement
professionals
-
Desire to create self-sustainable organisation in terms of process, competence
and enablement
The organisation had already improved its procurement capability. However it
recognised that further benefits could be delivered through a more focused
programme of improvements.
There was a methodology in place, but this was increasingly seen as too complex
for some categories and too simple for others.
The organisation was suffering initiative overload and therefore Procurement
was not getting the business involvement that it needed.
There was no clear development path in Procurement.
e-Enablement was not used very effectively.
|
|
|
|
|
Solution
-
Created a master plan for next level of organisational improvement
-
Developed and implemented a more efficient and effective segmented sourcing
approach to Sourcing Management
-
Introduced a robust Quality Assurance mechanism
-
Comprehensive review of processes to develop and introduce new tools and
techniques
-
Supported development and enablement of complete spectrum of processes and
tools
-
Deployed education programme at both individual and organisational level in
order to achieve self-sustainability
The team developed a master plan to deliver the next step change in procurement
performance.
A segment sourcing approach (SSA) was developed to ensure that business
involvement was focused where it was most needed (e.g. upon strategic and
complex categories).
Gaps in the methodology were plugged, but SSA ensured that it was equally
applicable to complex and simple categories.
Education was focused on both the individual and the organisation.
|
|
| |
|
Benefits
-
Clear road map of activities to secure the next phase of improvement
-
Sourcing Management process tailored to suit specific categories ensuring
effective deployment of resources and more rapid delivery
-
Collaborative e-Enabled management platform driving efficiency, consistency and
knowledge sharing
-
Quality Assurance process and people improvement to ensure robust credible
Source Plans
-
Additional process tools and techniques to ensure high quality delivery e.g.:
-
Commodity Management
-
Project Management
Procurement’s profile and its contribution to the business continued to grow.
SSA reduced the involvement of the business on non-critical projects and saved
19 FTE years of effort over 100 projects. Business involvement in critical
projects improved.
Benefits were secured on average 50% earlier than before.
The Procurement team felt more engaged and valued.
|
|
| |
|
