Challenge
After a challenging year during which financials have been impacted by the Covid-19 pandemic, our client launched an ambitious strategic initiative aiming at becoming more efficient, going back to growth and delivering sustainable value to Consumers and Doctors.
Curzon Consulting was instructed to conduct a full Procurement Organisation Review & Spend Opportunity Assessment
Curzon's approach
Curzon conducted a complete review of the procurement function. It included a quantitative part aiming at identifying cost savings opportunities and a qualitative part aiming at assessing the maturity of the organisation and value delivered to the business.
Quantitative Assessment
- Cleaned and categorised spend data
- Provided full spend transparency, baselined spend, volume and unit cost by category, supplier and hospital
- Conducted Category deep dive for each key category, identifying opportunities and sourcing levers
- Identified and quantified savings potential via internal and external benchmarking
- Prioritised source plan with savings targets by spend category
- High level 3-Year business plan
Value/Maturity Assessment
- Assessed procurement organisation against best practices in 8 dimensions.
- Quantitatively and qualitatively assessed the procurement team, conducted time analysis, salary benchmark & reviewed performance
- Business Partnering and perceived value : Interviewed key business stakeholders across all divisions, engaged with all Board Members to collect feedback and clarify expectations
- Assessed procurement influence across all spend areas,
- Defined and costed new (to-be) procurement organisation
Impact
- Identified broken links between Procurement and the Business : Procurement was perceived as a tactical team, good for tactical negotiations, but rarely involved in any strategic discussions.
- As a consequence, procurement was able to influence only a small part of non-strategic spend
- Curzon worked with the Senior Management Team and Key Stakeholder to define Business expectations and open the door to Strategic Procurement.
- Assessed existing Team, identified Gaps and suggested adequate procurement profiles
- Designed new procurement organisation, including sizing and targeted organisation costs
- Review external spend across 20+ categories
- Assessed procurement effort to category management, applied benchmarks and identified opportunities
- Identified substantial cost savings opportunities, leading to multi- £m cost savings
- Defined 3 years implementation plan, leading to more than 80% of the external being addressed.
- Curzon was engaged for the implementation phase of Procurement Transformation
