Case N° 1

SAVINGS RECOGNITION.

 

Business Case

One of our customers was suffering a lack of savings recognition. Savings reporting was centrally captured on a quarterly basis, from centralized contracts negotiation but also geographically delocalized negotiations conducted by local teams reporting to local business units. It was difficult to show the bottom line benefits of the complete sourcing organization.

 

Requirements

We were asked to deliver transparency on procurement activity, design, implement and monitor a savings tracking tool and drive savings recognition towards the global organization

 

Solution

We designed the global sourcing process and a tool to track spend and savings forecasts and performance.We aligned a common or standard definition of savings across the Global sourcing organization but also with Finance and other stakeholders.We set up a savings governance and trained stakeholders on savings monitory in the reporting tool…Automation and consistency of the Process drove savings recognition by the rest of the organization.

 

Value Created

Consistent and sustainable process which tracks sourcing projects from baseline to contracted solution, and allows team recognition and savings visibility.Well designed processes and increased people empowerment help accelerate the flow, reduce paperwork, admin task and allow the organization to focus on value added work.Higher financial visibility and budget accuracyHigher savings transparencyEasy performance monitoring