PROCUREMENT OPTIMIZATION

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

To discuss how our team can help your business identify the problem, recommend a solution and achieve sustainable results, call us at

415-890-2074 or please

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