Operational planning for global procurement and sourcing

The problem

A major incumbent operator with group operations extending from Africa, through the Middle East and into South Asia, wanted to consolidate spend in order to take advantage of the group's purchasing power as well as implementing procurement best practice across all group companies.

The solution

Analysys Mason was appointed to develop and implement the group procurement strategy and undertook the following major activities.

• Validated the strategy produced by the operator to ensure it captured best practice.
• Produced comprehensive route-maps that clearly defined the changes required within Head Office as well as at each of the group operators with specific focus on organisational plans, processes, role definitions, interfacing requirements, systems, HR, and category and supplier management tactics.
• Undertook workshops across the group to ensure complete buy-in from all key stakeholders prior to launching the operational plans.
• Planned and executed pilot projects to prove the concept of global procurement and make any necessary adjustments to the process.
• Delivered and executed a fully defined programme plan to bring the global procurement entity into operation and assist the operator with transition.

The result

Because of Analysys Mason's input:

• pilot projects delivered significant cost savings of over USD25 million for low-value category items, proving the concept
• deliverables produced gave the client a very clear indication of the route ahead to build the organisation and deliver the benefits envisaged in the strategy
• the client successfully implemented the proposed plan and is now achieving considerable capex and opex savings.