by Jan Malasek | Mar 31, 2021 | Strategic Sourcing
SITUATION OVERVIEW A newly hired CPO was not going to be able to be fully engaged with his new company, a national transportation equipment and service provider, for several months. The Company’s leadership had high expectations and had set aggressive savings targets for his first 12 months. Realizing that it takes time to understand the spend and opportunities, the CPO engaged Chris Lemnah, a long standing member of the OnDemand Professional Network to quickly analyze the spend and conduct the initial opportunity assessment (“OA”). APPROACH Chris kicked off an opportunity assessment consisting of stakeholder interviews, PO & AP spend analysis, and contract reviews. He also spoke with the existing procurement team members to better understand their current focus, as well as past activities. The information gathered was used to create an OA package that presented the opportunities across 4 workstreams: ControlsKey Customer InitiativesSpend Reduction TeamsTechnology Enablers The Controls workstream focused on getting Procurements involved up front in supplier selection, vendor master additions and maintenance, contract reviews, and requisition approvals. Key Customer Initiatives the team was involved in included enterprise-wide initiatives for Telecom, Benefits, and Oracle. Spend Reduction teams focused on a myriad of projects in various areas identified during the OA and brought to the team by other departments. Chris sourced and implemented multiple technology solutions for the client to help organize and solidify their sourcing and contracting processes. CRITICAL SUCCESS FACTORS Engaging & Aligning Stakeholders – Finance, IT & Operations were all engaged to help understand their impressions of the current procurement team and where they thought procurement could add more value.Data Integrity – despite having relatively few...
