Indirect Procurement

Yes, it is still possible to save 30% on indirect procurement!
Case study
06/12/2015

Context and challenges

A European leader in media was launching a savings program, managed by Procurement, to cut its costs by approximately 10%. The Group’s indirect procurement, which was highly fragmented and lacking transparency, accounted for around 15% of its expenditure.
This case involved:

  • Developing a clear indirect procurement roadmap, focusing on the most accessible areas for improvement
  • Operationally assisting Procurement in defining and implementing cost-cutting measures

Approach and methodology

By teaming up highly results-oriented procurement experts with internal teams, we managed to quickly document an exhaustive indirect procurement roadmap, significantly improving the company’s maturity in the areas of market awareness, suppliers and related levers.
The taskforce convinced the various stakeholders to agree on «innovative» action, meaning that ambitious savings targets relating to powerful suppliers were achieved. Our consultants supported the client’s teams in the practical implementation of action, ensuring commitment to the results.

Results

  • More than 30% savings obtained across four pilot expenditure categories: taxis, couriers, postage, marketing and express transport
  • Developed the skills of Internal Procurement by increasing the power of the buying