Procurement Excellence

DIGITIZATION OF THE PROCUREMENT FUNCTION AND OPTIMIZATION OF THE PURCHASING STRATEGY

Challenge

The management of a family-owned business asked us for advice on in an excellence program focusing on the procurement function. The project focused on the digitization of the procurement function and optimization of the purchasing strategy.

VALUE TO THE CLIENT

The derived product strategy enables purchasing efficiency and effectiveness increasing overall operational quality. With the visualization of the as-is purchasing process the current level of digitalization became transparent and the to-be process could be derived. In the procurement dashboard strategic progress can be monitored on a continuous basis.

OUR APPROACH

We took a holistic view on purchasing strategy, information, organization, processes and technology. The purchasing strategy for individual products was analyzed and examined with regard to measures for standardization and optimization. The action items were evaluated and prioritized on an implementation timeline.

For steering the procurement function and for progress measurement towards the strategic goals, relevant information must be available on a continuous basis. To achieve this, core procurement KPIs were identified, automated, and visualized within a dashboard. State-of-the-art technology such as Robotic Process Automation (RPA) was used to automatically screen through new procurement documentation to achieve maximum reporting automation.

Key to digitalization and optimization is the procurement process. To gain an understanding of the information flow through all relevant IT systems, we conducted a comprehensive analysis of the as-is process through expert interviews and documentation screening on an activity level. A digitalized and automated target process as well as quick wins were derived. Conversely, this also leads to a necessary adjustment of roles and responsibilities within the procurement function and at the interfaces to other departments.

WHAT COMES NEXT

The essential next step is the organizational implementation of the product strategy as well as the realization of the to-be procurement process. In addition, the dashboard will be developed to adapt it further to the needs of the customer.