Our Insights
Case Study

Procurement strategy and skills-building

Sector

Pharmaceuticals & Healthcare

Area of expertise

Category Management

Supplier Management

Negotiation

Service

Consultancy

Coaching

Training

Organisation T/o

$30m

Organisation geographical spread

UK

Procurement spend

$18million

Business situation

The procurement team of a small UK-based pharmaceuticals company with a decentralised business model had limited influence on commercial activities. The team was dealing with several business units with very different aims and was largely tactically focused on basic procurement activities. Our task was to look at their procurement strategy.

The new Chief Procurement Officer wanted more control of their external costs through better procurement practices. His aim was to improve the overall level of capability of the procurement team, including improving idea generation, closer and more collaborative working with the business, and structuring better strategies to deliver significantly more value.

Solution implemented

Working with the CPO, Future Purchasing created a procurement strategy that aimed to focus the procurement team on value delivery rather than simply buying products and services. We identified all current procurement improvement initiatives, interviewed senior stakeholders to capture their needs and held workshops with the procurement leadership team.

We undertook a competency assessment using our bespoke competency assessment online tool COMPASS to identify skills gaps in the procurement team and create a learning plan for each team member.

Finally, a series of targeted training workshops were set up covering category management, supplier relationship management and negotiation skills to upskill the procurement team.

“Group discussions provided clarity on how to move forward with category management.”

“Good to see where we have come from and a reminder of the skills we will need to become excellent category or supplier managers.”

Procurement team members

.

Benefits delivered

The new procurement strategy ensured the procurement team was more aligned with the overall direction of the business. Equipped with enhanced procurement and influencing skills, they became more strategic in their thinking and delivered more value to the business. The procurement team’s perspectives about procurement and their impact on the business was broadened.

Future Purchasing created an energy and excitement within the procurement team, as well as more cross-functional working across categories of spend. As a result, far greater engagement with their business stakeholders was achieved, as well as significant cost savings.

In parallel, procurement line managers were trained to use a new set of coaching skills to support their teams to work more cross-functionally with stakeholders and lead category management across their businesses. The workshop sessions were structured to learn, practice and observe the following key leadership skills in the context of category management:

The function moved from a box ticking mentality to one that intelligently and collaboratively explored internal business needs and matched them with what the supply marketplace could offer.

Supplier management

Our supplier management approach combines excellent tools and techniques across the full range of activity, from segmentation, through performance measurement and improvement and through to relationship strategy development.

Category management

Excellence in Category Management gives multipliers of value delivery compared to less effective programs. Our approach, delivers a high performing team and process which provides sustainable value over years rather than months.

latest Future Purchasing INSIGHTS

transparent spacer

insight guides

Building team strength in procurement

This insight guide explores the leadership and team capability factors that clearly influence the ability of procurement to deliver better results. Focusing on these areas provides benefits that are far larger than the investment needed to secure them.

By Mark Hubbard | 09/02/21 | 3 MIN READ

blog

Category management is much more than strategic sourcing

Category management is the strategic end-to-end process for managing categories of related supplier spend that aligns business goals and requirements with supply market capability. It transforms the long-term value achieved from an organisation’s total supplier spend and delivers a blend of value including improved service, reduced risk, lower cost, higher revenue and ultimately better organisational…

By Simon Brown | 04/10/22 | 2 MIN READ

case study

Procurement transformation and quick win savings

A medium-sized insurance company, with a large number of insurance offices across the UK. Our client wanted to drive a change programme in procurement and reduce costs by using category management as a key enabler.

By Simon Brown | 04/02/21 | 2 MIN READ