Procurement transformation and quick win savings

Solution implemented

Delivering procurement transformation.

Initially, Future Purchasing carried out an opportunity analysis to identify potential savings and recommended a procurement structure to deliver the benefits. Stakeholder interviews were undertaken and opportunity areas were validated.

Based on the findings, FP helped to re-structure the procurement organisation and to recruit a number of new staff for key positions within the team. A new procurement policy and contract register was set up together with a category management and benefits tracking process.

We established a programme governance structure with access to the senior executive team and developed cross-functional category strategies that were reviewed.

Benefits delivered

Following our work, the new procurement team became involved in all areas of external spend. Our initial programme identified £9.7m savings for delivery (8%), including:

• savings on print and mailings worth £2.5m (23%)
• savings in buying external credit data through structured contract negotiation (40%)
• cost saving in IT equipment spend through RFP process (12%)
• saving in travel and accommodation by implementing a new travel policy (8%).

We created a new procurement policy, procedures, benefits tracking process, contracts register and overarching Procurement strategy.

We also introduced a new category management way of working that involved developing category strategies in a more cross-functional way with key stakeholders. And we coached individual members of the procurement team in how to deliver the savings opportunities.