"PA worked with the client to design the new procurement operating model, which delivered the targeted savings within 12 months."
Tim Lawrence, Procurement Consulting, PA Consulting Group
PA Consulting Group's client had previously achieved year-on-year cost improvements by enhancing its procurement operating model, but was frustrated with being unable to secure any further savings. They called on PA’s experience in supply chain, procurement, organisational design, process development and systems integration to unlock these cost savings.
The first step was to benchmark the FMCG client against other organisations, to compare the savings they were achieving against a range of other sectors. PA found that the current savings rate could be doubled for a period of up to two years.
The key barriers and the specific enablers to delivering these opportunities were identified. Specifically, PA recommended two successful changes to the FMCG company’s procurement operating model:
Stronger governance with single-point accountability for all procurement, behaviours, outcomes and best practice
Dedicated resources for strategic sourcing, operational procurement, market intelligence, commodity management, innovation and integration.
PA worked with the client to design the new procurement operating model, which delivered the targeted savings within 12 months.
To find out how PA can redefine your procurement function, please contact us now.