Case study

Devonport Management Limited

Establishing a commercial procurement organisation to optimise the supply chain and reduce costs

Devonport Management Ltd (DML) was established to operate Devonport Royal Dockyard in response to the challenges facing this strategic facility during the late 1980s. The principal activity of the DML Group is submarine and warship refit and maintenance, together with an increasing role in warship design and construction. DML recognised that, in order to maintain its customer commitment to reduce the cost and timescale of maintenance and refit activity (and thereby avoid contractual penalties), a major step change in procurement practice was required.

Subsequently, over a period of five years, DML has established a commercial procurement function with professional leadership at a senior level. PA Consulting Group has supported this process through a number of discrete consultancy engagements including:

• procurement strategy
• organisational change
• supplier development
• control and monitoring systems.

The overall result has been demonstrable benefit to the organisation, its customers and suppliers, together with a measured and monitored procurement cost reduction.