| Contract management for
a European manufacturer |
| A European home products manufacturer
has operations in 4 major European countries, with
several plants and buyers in each country. They
have some categories which were covered by centrally
negotiated contracts and others which have to be
bought by local site managers. However site managers
are not able or willing to access the web or internal
systems. The CFO wants to ensure that the negotiated
price savings are realised quickly by fully utilising
the contracts. |
| |
| NovoSupply assists
the client get utilisation fast through 3 actions. |
| • |
Procurement help-desk
(multi-lingual) number set up for all staff
to call whenever they have any purchasing
requirement. This team keeps a record of
all queries.
|
| • |
A contract management database
of all contracts in place is set up so that
everyone knows which categories have central
contracts. The procurement help-desk uses
this as a vital input in supporting all staff. |
| • |
A pro-active communication programme
is set up to reach all staff so that they
know about the benefits from centrally negotiated
contracts. This includes “town-hall”
briefings, outward telephone programmes, e-mail
updates of successes and a procurement web
page for easy access for all staff. |
|
| |
| NovoSupply achieves
results saving over €9m, with a further pipeline
of €5.5m! |
| • |
The client
achieves 73% usage of central contracts
for the selected categories with a cost
saving of over €9m on spend of €79m.
|
| • |
Through the help-desk team’s
records, further categories and cost savings
opportunities are identified with a potential
saving of €5.5m for the following year. |
| • |
Procurement becomes a winner!
The whole organisation starts to appreciate
procurement seeing it as an enabler rather
than a blocker! |
|
