Establish and operate a purchasing department for five years, with

a €5 billion expenditure budget

BUSINESS CASE

Railways

PURCHASING

Provide a flexible external solution, based on a work units price model.

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Challenge

With a €1.5 billion stuctural deficit and the legal obligation to have an independent purchasing department, our client decided to create an external purchasing department with the aim of achieving a high level of purchasing maturity within five years.

Solution

To increase the speed and flexibility of the programme, an external, flexible project-based skills solution was put in place. KLB Group was selected to build, operate and transfer this global solution. After the 1st phase, where priority issues were identified during a 4 month period (organization, process, tools), KLB Group was entrusted with a project roadmap. The roadmap was followed-up with regular project reviews and adapted based on the project’s evolution. To fully complete its mission, KLB Group set-up a unique management system to inform the customer and alert the project teams about ongoing actions, achievements, as well as results and deliverables.

At the same time, this system enabled KLB Group to manage its activity like a service centre, based on a detailed work unit catalogue:

KLB Group’s teams mainly worked on strategic topics related to purchasing.

RESULTS

Over the five years period, KLB Group rapidly increased team capacity :

  • establisment of a team of 35 consultants within 5 months
  • addition of 80 consultants after 18 months
  • management of over 1300 projects
  • establishment of a Work Unit Catalogue covering over 80% of the purchasing scope