We have proven process maturity model based methods and benchmarking techniques to help you understand where you are compared to your peers and the procurement performance leaders. We’ll work with you to create a transformation plan based on this assessment with a target to implement known, highly effective, procurement practices while meeting your total cost of ownership targets. We’ll also help you execute this plan, ensuring that you deliver both near term quick hits and longer term differential improvement.
Procurement Transformation isn’t easy. If you are like most procurement leaders, you’ve already started a strategic sourcing effort to get quick savings, but you’re finding it hard to figure out what to do next. Do I improve my IT systems to gain efficiency and reduce errors? What if I focus on cleaning up my master data to better understand and control my spend? Should I modify my processes to align them with those I know to be highly effective? Do I focus on changing my organization and improving my staff capability? By now, you’ve probably concluded that you will need to do all of this and more, but you’re struggling to prioritize your efforts.
Determining the optimal design for your Supply Chain organization isn’t easy. Should it be decentralized, centralized, center led or something else? Do you have the staff to execute in the optimal organization now, or should you move in steps and gain time to build additional leadership capability?
A procurement transformation effort can reduce your costs significantly. For a typical implementation, you will see annual cost savings of 4 to 9% on your services and indirect materials spend. You will also capture fixed cost savings of 20 to 30%. With normal program execution costs equal to 1 to 2% of one year of spend, depending on your organizations size and current capabilities, most procurement organizations will break even during the third year of program execution.
Ross Harvison, Intuitivum Group Managing Partner and President of ISM-Houston, participated in a panel discussion on “Creating an Open Environment for Change” at the 15th Annual Shell Hispanic Employee Network (SHEN) Conference held recently in Houston. Other panelists included Michael Beckwith, Managing Counsel for Global Litigation at Shell, and Manuel Prieto, Associate Principal at McKinsey & Company.
You can find Ross’ prepared responses to questions by clicking here.
Like most business leaders that are looking to create a major change, you recognize the need to build strong processes, systems and organizations to deliver much greater value over the long term. Unfortunately, as a procurement leader with out of date strategic sourcing processes, your biggest concern is shoring up this effort to quickly capture available savings. We understand both of these needs and will help you deliver value near term, and rapidly build business and operations excellence.