CASE STUDY

Expense Reduction Through Transformative Procurement Process Re-Engineering

Our tailored solutions specialize in nonprofit financial planning, enabling organizations to streamline procurement and contracting processes. We focus on creating strategic frameworks that ensure cost savings, operational efficiency, and defined career paths. By aligning technology with global standards, we empower nonprofits to achieve their financial goals effectively. Let us help you transform your processes and optimize resources for sustained success.

SITUATION

Client's previously decentralized procurement model led to fragmented and inefficient processes, inconsistent contract management, sub-optimal category spend, and a lack of organizational clarity across its global operations.
This structure prevented the organization from realizing the benefits of a best-in-class procurement organization - cost savings, effective global coordination, and clear standardized career paths that improve employee retentio

ACTION

Working as management consultants for a Tier 1 Global Consulting Firm, we led a comprehensive engagement to transform the client's global Procurement function. Our approach involved:

Global Centralization: Redesigning and centralizing the previously distributed Procurement organization to establish a single, globally coordinated function.
Process Redesign: Overhauling the entire Source-to-Pay (S2P) process to implement global standards, best practices, and enhanced governance.
Strategic Sourcing & Cost Reduction: Implementing a Strategic Sourcing methodology across key spend categories, targeting significant, sustained cost reductions.
Organizational & Talent Design: Defining a new organizational structure, clear roles and responsibilities, standardizing job leveling and promotion criteria to create transparent career paths.
Technology & Enablement: Guiding the consolidation and implementation of a single, consolidated procurement and contract management system.
Change Management: Developing and delivering comprehensive training on new processes, standards, and systems to ensure enterprise-wide adoption.

RESULTS

Financial Savings - Achieved a 10-20% reduction in category spend in targeted categories.
Operational Efficiency - Established increased coordination and operational efficiency across the global enterprise.
Organizational Clarity - Defined clearer career paths with standardized roles, responsibilities, and promotion levels.
System Consolidation - Successfully implemented a consolidated procurement and contract management system.
Source-to-Pay (S2P) - Implemented business process improvements across the entire S2P lifecycle.