Procurement Transformation
Siecap Team members assisted a multinational with global procurement transformation for direct materials.
The Background
The client is a global leader in the design, manufacture, and delivery of Mining Equipment.
With the end of the Mining Boom, the organisations situation changed from struggling to meet demand and high returns on capital, to overcapacity and second tier returns on capital. Cost control became an essential aspect for the business to recover and maintain market share. Procurement became important again in this process, and needed transformation of its capabilities to meet this challenge. The Supply Chain and Procurement functions where combined to further focus collaborative performance improvement.
Indirect procurement was lead from Group procurement.
Objective
Upgrade Category Management, SRM and Supply Chain Management globally. Key elements where:
Refocus Category Management from a supply reliability focus to a total cost of ownership approach to deliver substantial sustainable savings
Establish a Manufacturing Footprint Strategy to allow rationalization of manufacturing assets.
Establish Cross Functional Category Teams for Supplier Management, Supplier Improvement & Development and Supply Chain Management
Performance Management: New Savings Reporting Procedure/Project Management systems. Refreshed KPIs linked to new incentive plans to drive performance
Emphasis & Scope
Emphasis of the transformation was to:
Establish a pipeline of TCO savings opportunities to be executed with Key Suppliers
Re implement Supplier Management, with a particular focus on Contract Management
Scope:
All Direct Categories and Country Units, including best cost country sourcing
Our Clients
We have delivered results for distinguished businesses and projects in Australia and abroad.
