THE OBJECTIVE

• A top five national cable company asked Cavallino to assist in assessing the strategy, process and infrastructure of its Procurement department

• Evaluate the end-to-end procurement processes (Procure-2-Pay), identify opportunities, and develop a 3 year strategy with appropriate implementation plans

 

THE CHALLENGE

• Sourcing, contracting and purchasing activities are largely decentralized and not fully leveraged

• Unconsolidated spend limits ability to negotiate favorable cost reductions leveraging aggregated Spend

• Strategic Procurement’s activities seldom penetrate beyond high spend, high volume suppliers

• Significant gaps in process and technology

• Low confidence and cultural buy-in from internal customers

• Lack of end-to-end visibility into actual spend by category

• Limitations in reporting and compliance contribute to minimal control of spend and procurement activities

• Contract management is decentralized

 

THE SOLUTION

• Increased and leveraged enterprise-wide procurement spend under management

• Filled open VP Procurement position and refined organizational design

• Developed a current state assessment of key procurement activities

• Developed an operating model that improved working capital while minimizing risk

• Leveraged better practices to improve operational efficiency

• Evaluated current technology tools and recommended enhancements

• Developed plan that reduced maverick spending

 

THE RESULTS

• Increased the influence of procurement

• Standardized & increased control through improved visibility, reporting & compliance

• Outsourced indirect spend to 3rd party

• Implemented Procure to Pay technology platform

• Implemented centralized contract management platform and functions

• 3 year cumulative savings: $465M