Less Administration in Technical Purchasing, Stronger Focus on the Core Process

Client Challenge

The Chief Operations Officer (COO) and the new Head of Technical Purchasing of a listed retail company came to the conclusion that the Technical Purchasing Department, which purchased all articles, products and services outside the merchandise, incurred excessive administration expenses which significantly distracted the department from the core business. There was only a handful of documented standards which can be used for ensuring targeted repeatability of recurring processes. The task at hand consisted in leveraging the potential existing in this area.

Mandat Intervention

  • At a facilitated decision and planning workshop attended by both the COO and the division manager we defined the procedure necessary to leverage the existing potential.
  • We delineated interfaces, identified chances and risks of the (partial) outsourcing of certain processes and defined the optimal process workflows.
  • We worked out options for an optimal geographic location for the Technical Purchasing department and drafted the basic structure of a process-oriented call for tenders in the event of outsourcing of certain areas.
  • Taking into consideration the ongoing reorganization of the merchandise information system, we prepared a feasible plan for implementing the principle of “to the internal customer, one face to the supplier”.

Results

  • A decision-making template for the corporate management board, including the implementation schedule, has been created.
  • The decision to address the reorganization of Technical Purchasing has been made.
  • The realization concept has been created so that the client can work at the realization alone or with the help of third parties. The realistic target consists in a 15% improvement of productivity in Technical Purchasing within a period of two years.

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