Procurement Transformation

Siecap Team members assisted a multinational with global procurement transformation for both direct & indirect categories.

The Background

The client is a global leader in the design, manufacture, and delivery of Elevators & Escalators.

The organisation was built from national company acquisitions who where left to operate fairly independently, with group manufacturing providing some global products for national use. Global procurement had limited scope with direct and indirect procurement operating separately. An organisation wide procurement transformation process commenced to support the new corporate strategy and leverage the organisations new products and manufacturing resources, human resources and spend.

Objective

Implement Category Management & SRM globally. Key elements where:

Establish Category Management, executing coordinated global, regional and local procurement

Implement an SRM IT platform: Project, Spend, eRFX/ Negotiation, Contracts and Supplier Performance Management.

Establish Cross Functional Category Teams for Supplier Collaborative Relationships, Supplier Management, Supplier Improvement & Development and Supply Chain Management

Performance Management: KPIs linked to incentive plans, Competence Assessment, Training & Development Programs

Emphasis & Scope

Emphasis of the transformation was to:

Implement Best Practice with a culture of continuous improvement and innovation
Align with the evolving Corporate Strategy of “Must Win Battles” and expected behavioural values

Scope:

Global
All Categories and Country Units, including best cost country sourcing