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”).
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:
- Key Customer Initiatives
- Spend Reduction Teams
- Technology 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 systems, significant effort was required to ensure that all parties agreed with the scope & categorization of the spend data consolidated from the various sources.
- Collaborative Deliverables – stakeholders and existing procurement team members worked together to identify and achieve goals through the Opportunity Assessment and prioritization process.
Within 6 months, the team had completed 36 projects that would deliver $13.7M in savings against $111 M in spend.
The Key Customer Initiatives had completed all commercial negotiations and were into implementation phases.
Chris implemented the sourcing platform with an integrated multi-step sourcing process customized for the client as part of its functionality. The platform facilitated eRFX and reverse auction events that were extensively used by the team of consultants and existing procurement professionals.
Chris pushed the business to conduct its first ever reverse auction, choosing to bid out laptops & desktops to the incumbent and multiple newly qualified potential suppliers. Event led to over 13% savings and awarded the business to the existing office supplies provider, greatly simplifying supplier management efforts.
Chris implemented the contract database with hundreds of agreements, collecting the applicable contract elements and renewal alerts in a tool that when combined with the sourcing platform
Policies had been rewritten to ensure Procurement was engaged where appropriate and that spend controls were set up to ensure sufficient controllership without stifling the business’ operations.
Chris’ efforts to standardize the tools, process & procedures ending up reducing project cycle times by up to 30% – a significant improvement that ended up changing the perception of procurement from one of a hurdle that slows down projects, to one of a partner that can enable better solutions with significant savings.
MEET CHRIS LEMNAH
OnDemand Professional Network Member Since 2010
Chris is an experienced procurement and operations executive with over 25 years in leadership roles. He has worked extensively overseas, as well as in a variety of industries, in roles that have encompassed the areas of supply chain, outsourcing, strategic sourcing, acquisition integration, and financial controllership. Chris’ sourcing experience spans across many categories of Direct and Indirect Spend. He has strong analytical skills and has helped multiple companies implement strategic sourcing and category management programs. A former U.S. Navy Submarine Officer and member of GE’s Audit Staff, he holds a MBA from the University of Notre Dame and a Bachelor of Arts in Biology from the University of Rochester.