Company Profile

Medium-sized, Australian manufacturing company with an annual turnover >$400m, 13 sites nationally and employing over 400 people.

Issues

New MD required an independent audit and assessment of national procurement operations. Objectives included:

• Benchmarking procurement performance
• Recommending strategies for optimal procurement functioning
• Provision of operational support
• Identification of cost and efficiency savings.

Project Scope

Researching and proposing optimal outcomes for:

• The management of targeted categories of expenditure
• Supplier management systems
• Procurement structure, strategy, processes and competencies
• Procurement information and management systems

Key Findings

Need to develop Procurement as a core business process, enabled by:

• High-level procurement contribution and influence
• An evolving operating framework
• A networked structure and organisation
• Effective internal and external relationships
• Robust procurement systems
• Development of core procurement competencies.

Outcomes

• Executive Management support for all recommendations
• Identification of $1m cost savings
• Recruitment of a National Procurement Manager (by TPS)
• Hands-on operational support (TPS acting as Manager until recruit was inducted)
• Negotiation of key deals
• Training of staff in use of contemporary procurement tools and techniques
• Development of data and information management systems.