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Procurement transformation for a large Industrial Group

Industry

Challenge

Challenge

Chemical, Metals and Mining, Power generation industrial group:


$7 billion annual procurement spend


100 000 employees

Challenge

Challenge

Challenge

Procurement service levels below 80%.


Low spend management transparency. 


Bureaucratic processes, underperforming and demotivated procurement team. 






Approach

Approach

Approach

Introduced large-scale transformation program: 


Implemented revised governance and operating model to streamline decisions, performance management and reporting.


Optimized planning, sourcing, stock management, supplier management processes.


Introduced new people and team management approach: evaluations, trainings, motivation system. 

Results

Approach

Approach

Achieved 95% procurement OTIF (On-Time In-Full) service level.


Delivered 3-5% sustainable annual savings in key spend categories.


Reduced production losses, shortened capital overhaul cycles, and improved inventory turnover.


Strengthened spend transparency, team accountability, and engagement. 

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