Create an indirect purchasing department and help it develop in maturity

BUSINESS CASE

Retail

PURCHASING

Provide an external and flexible purchasing activity through an innovative management approach.

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Challenge

Our customer decided to set up an indirect purchasing department with the aim of improving the level of purchasing maturity and controlling its spend within an environment of strong company pressure to reduce costs.

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Solution

A purchasing department was created to meet the cost reduction objectives of the company and to cover new strategic purchasing categories (Marketing, Communication and Digital).

A current expenditure and contracts audit was carried out in order to identify high-stakes projects and recurring needs, in order to establish a precise roadmap with an action plan.

Initially, the expansion of sourcing and the use of competitive bidding was prioritized in order to quickly generate savings.

Other actions were also taken to minimize expenditure and facilitate the work of contractors while demonstrating the Purchasing Department’s added value, for example, the introduction of e-catalogues and framework contracts.

For spend below €10,000, KLB Group managed the transfer of the activity to a service centre in Eastern Europe  and provided coaching for the services centre employees, while setting up and monitoring processes.

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RESULTS

  • Category coverage and acceptance rates from internal customers exceeded the objectives set by the customer.
  • Achieved savings of over 9%
  • For facility management categories the responsibility was transferred from internal clients to the Purchasing department