Identification of procurement improvements
Background: This superannuation organisation was seeking to design a fit for purpose procurement operating model including team structure, roles and responsibilities, governance model. As well as improve spend management practices through vendor and category management, and Improve efficiency through use of technology, processes and systems.
Service: Advisory & Change – Procurement Diagnostics
ArcBlue implemented its Procurement Diagnostic methodology, and team to:
- Review and analyse all existing documentation and data to establish a baseline of the current operations.
- Execute a series of cross functional workshops and one on one interviews to establish actual current practices, pain points, and weaknesses.
- Develop multiple recommendations to improve outcomes whilst leveraging existing capability.
As a result, a new procurement organisational structure was designed which largely leveraged existing resourcing. The organisation gained support from the executive to support the new structure, simplified and lean procurement and contract management processes, and there were multiple recommendations made across all nine of the ArcBlue Procurement excellence dimensions including technology. Whilst savings were not the main objective, estimated benefits of $4M were identified through the project.